US trade deficit hits record US$68B in July

(AP)
Updated: 2006-09-12 21:44

So far this year, the deficit is running at an annual rate of US$776 billion, putting the country on course to rack up a record annual deficit for the fifth straight year. Democrats, campaigning for control of Congress in the November elections, hope voters will view the soaring trade deficits as evidence that President Bush's trade policies are not working.

For July, US exports, after setting a string of records, edged down 1.1 percent to US$120 billion - still the second highest level in history. Sales of American jetliners, computers and food products all slipped.

Imports rose to a record high of US$188 billion, an increase of 1 percent from the June level. America's foreign oil bill climbed 4.8 percent to an all-time high of US$28.5 billion, reflecting record oil prices in July.

The politically sensitive deficit with China did decline slightly in July to US$19.6 billion but is still on track to far exceed last year's US$202 billion deficit, the highest ever recorded with a single country.

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