Friday, February 10, 2006

Trade Deficit Widens Slightly, US Exports Hit Another Record

- The Trade Balance for December widened to -$65.7 billion versus estimates of -$65.0 billion and -$64.7 billion in November.
BOTTOM LINE: The US trade deficit widened last year as US economic growth remained robust and energy prices jumped, Bloomberg reported. Imports rose to a record on US demand for business equipment, industrial equipment, autos and consumer electronics. US exports also rose to an all-time record to $111.5 billion. I continue to believe the trade deficit will only improve modestly over the intermediate-term as falling commodity prices more than offset the fact that the US economy will remain relatively strong compared to economies of other industrialized nations.

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