U.S. trade deficit falls 2.3pc

Press, 30 August 1989, Page 39

U.S. trade deficit falls 2.3pc

PA Washington The United States trade deficit fell 2.3 per cent to $U527.72 billion ($NZ47.108) for the three months ended June 30, the smallest quarterly deficit in four years, the Commerce Department said. The improved trade performance was because of a 3.4 per cent jump in exports which hit $U590.878 during the second quarter of the calendar year. Imports were up two per cent to a record SUSIIB.SBB. The largest increases in exports were reported in industrial supplies and materials, capital goods and consumer products, while agricultural sales remained virtually unchanged from the first quarter at SUSIO.7 billion.

With the latest figures, the U.S. trade deficit for the first six months of the year was running at an annual rate of $U5112.28, down 11.7 per cent from the 5U5127.28 imbalance recorded in 1988.

But many economists expect the stronger dollar to hurt exports and force the deficit up during the second half of the year.

The April-June deficit was the lowest since the first quarter of 1985, when the trade imbalance stood at $U525.78.

The Commerce Department’s quarterly figures, calculated on a balance of payments basis, excludes military sales by the government which are included in the department’s monthly trade figures, which also showed a steady decline in the deficit for the first half of the year.

The second quarter increase in imports was fuelled primarily by a 24 per cent jump in the value of petroleum imports, which totalled $U513.48.

Foreign car imports, on the other hand, dropped SUSI.7B.