MercoPress. South Atlantic News Agency

Pre-Katrina US trade gap drops slightly

United States trade deficit last August dropped 2,6% with exports reaching a new record while imports of consumer goods and capital equipment slowed according to the latest release from the US Department of Commerce.

The deficit was 57,940 billion US dollars, down from 58,820 billion last June, with exports reaching a record 106,2 billion US dollars.

Imports of civilian aircraft decreased as did consumer goods such as clothing and pharmaceutical products which helped to compensate a 15,3 billion increase in the US oil bill for July.

"Deficit was lower than expected, although energy remains at the heart of the trade gap", said Robert Brusca from Opinions Economics in New York. Actually the total energy deficit reached 18,5 billion US dollars in July.

The full impact on foreign trade and oil imports from hurricane Katrina will be revealed after September particularly when figures are released next November.

The trade deficit with China also marked a new record reaching 17,7 billion US dollars with imports of 21,3 billion and sales of 3,6 billion.

Wholesale prices increased 0,6% last August given the sustained energy bill, but the overall index was lower than July's 1%.

Production prices, leaving aside volatile food and energy items, remained unchanged in August after experiencing a 0,4% variation in July.