MercoPress. South Atlantic News Agency

Oil prices and Chinese textiles boost US trade deficit

The United States trade deficit jumped 6% in June reaching 58,8 billion US dollars boosted by the soaring price of oil. The gap in May was 55,4 billion US dollars.

US Commerce Department reported that petroleum exports reached 19,9 billion US dollars with the average barrel price at 44,40 US dollars.

US exports actually marked a new record in June 106,8 billion but imports pushed by oil prices totalled 165,6 billion US dollars.

As summer holidays advance and the demand for fuel keeps growing there are increasing concerns that the price of oil could begin to have an impact in the US economy.

"If such prices persist they clearly will have some negative effects on growth", said US Secretary of the Treasury John Snow.

Growth estimate for the second quarter was forecasted to be close to 4%, but with "the headwinds", most analysts are now expecting a 3,7% GDP expansion.

A second cause of concern was the US trade deficit with China which climbed to 17,6 billion US dollars, boosted by textile imports particularly since worldwide quotas were abolished. US purchase of Chinese textiles in the last twelve months has jumped 54%.

However the US trade balance also showed deficits with Mexico, Canada and most Latinamerican countries.