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US trade gap widens in June on oil prices

Published 08/12/2009, 08:32 AM
Updated 08/12/2009, 08:36 AM

WASHINGTON, Aug 12 (Reuters) - The U.S. trade deficit widened in June to $27.0 billion, as goods imports increased for the first time in 11 months on the back of higher oil prices, a Commerce Department report said on Wednesday.

Analyst surveyed before the report had expected the monthly trade gap to widen to around $28.5 billion. But stronger foreign demand for U.S. goods and services offset some of the impact of the oil price increase on the deficit.

Both U.S. exports and imports remained sharply below year-ago levels, before the global financial crisis began wreaking a savage toll on international trade.

The trade gap for the first six months of 2009 totaled nearly $173 billion, down more than 50 percent from the same period last year. At the current pace, the U.S. trade deficit for all of 2009 would be the lowest since $265 billion in 1999.

U.S. imports of goods and services rose 2.3 percent in June to $152.8 billion, the highest since January. Higher oil prices accounted for much of increase, and imports of consumer products fell to the lowest since November 2005.

The average price for imported oil rose for the fourth straight month to $59.17 per barrel, helping to widen the U.S. trade gap with the Organization of Petroleum Exporting Countries to the highest since October 2008.

U.S. exports rose 2.0 percent in June to $125.8 billion, led by stronger foreign demand for industrial supplies and materials and capital goods.

Exports of foods, feeds and beverages were the highest since October 2008.

The politically sensitive U.S. trade gap with China widened to $18.43 billion, the largest with any single country. Imports from China were $23.98 billion in June, while U.S. exports to that country totaled $5.55 billion. (Reporting by Doug Palmer, Editing by Andrea Ricci)

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