Tuesday, July 13, 2010

US trade deficit at 18-month high

The US trade deficit widened to its highest level in 18 months in May, driven by demand for imported cars, computers and clothing.

The deficit increased by 4.8% to $42.3bn - the largest since November 2008, Commerce Department data showed.

The 2.9% rise in imports outpaced the 2.4% climb in exports.

US manufacturing has benefited from the global economic recovery, but some fear that problems in Europe will hurt sales in the future.

Debt troubles in the eurozone have also caused the value of the euro to weaken against the dollar this year - making US-made goods less competitive in the 16 nations using the euro.


Adopted from: http://news.bbc.co.uk/2/hi/business/10614531.stm

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