Wednesday, July 13, 2011
US trade gap nears three-year high
The deficit came after a notable jump in the oil import prices
Source: Press TV
The United States' trade deficit exceeded USD 50 billion in May, pointing to the widest such gap since October 2008, official data have shown.
The trade gap expanded to a seasonally adjusted USD 50.2 billion in May, from a downwardly revised $43.6 billion in April, according to figures released by the Commerce Department.
The market consensus estimate had put the deficit at USD 44 billion, Reuters reported.
It was also "dramatically above April's USD 43.6 billion (only marginally revised from USD 43.7 billion),” reminded David Sloan, economist at the IFR Economics, a unit of Thomson Reuters.
The alarming state of affairs came after oil import prices skyrocketed to USD 108.70 per barrel -- the highest since August 2008.
Kurt Brunner, Portfolio manager at Swarthmore Group, Philadelphia, Pennsylvania, however, downplayed the contributor.
"Part of it can be traced to the oil imports. I don't know if it's a major market moving issue. I guess it will have some impact on the GDP during the quarter,” he said.