For edjekumacashkunal poiposes only:Trade deficit hits record
October imports from Asia push gap to $25.9B, above economists’ estimates
December 16, 1999: 9:53 a.m. ET

NEW YORK (CNNfn) - The U.S. trade deficit widened to a record in October, fueled by rising oil imports and a record volume of goods and services coming into the country from the Far East, the government reported Thursday.

October’s trade gap expanded to a record $25.9 billion, the Commerce Department said, above the $24 billion deficit economists had expected and August’s revised $24.2 billion deficit. Imports surged to a record $107.9 billion, while exports declined for a second straight month to $81.9 billion.

October’s surging imports and stagnant exports are yet another indication of Americans’ voracious appetite for imported goods and services -- a reflection of an economy about to enter its ninth year of uninterrupted expansion, economists said.

At the same time, swelling imports could potentially weigh on U.S. manufacturing, slowing economic output in the final three months of the year as products and services make their way off boats and planes and not off U.S. assembly lines.

Clearly not expected
"It clearly wasn't expected,” said Jay Bryson, international economist with First Union Corp. in Charlotte, N.C. "It's not great news because it shows that U.S. domestic demand is very strong. That's not a sustainable situation.”

Bond investors chose to go with the strong-growth scenario, with the benchmark 30-year Treasury holding its losses. Stock investors took a different tact, sending S&P futures up more than five points in pre-market trade.

In the first 10 months of 1999, the trade deficit totaled $218.4 billion, up significantly from the $135.4 billion recorded during the first 10 months of last year. At its current pace, the trade shortfall has already topped last year's record of $164.3 billion and should ring in around the $262-billion mark, according to economists’ estimates.

As imports surged, the deficit with Japan overtook the one with China in October, ringing in at $7.18 billion. It was the nation’s largest deficit with any country on record. The trade gap with China rose to $7.15 billion, up from $6.9 billion in the previous month.

Oil deficit narrows
The trade deficit with major oil producing countries declined to $2.7 billion from $3.0 billion in September. But the October price per barrel of crude petroleum rose to $20.74, the highest since January 1997 when the price was $21.86, the report said.

The trade gap with Western Europe surged to $5.0 billion compared with $3.5 billion in September. The deficit with Canada -- the country’s largest trading partner -- rose to $3.2 billion from $2.8 billion in the previous month. The deficit with Mexico slipped to $1.4 billion from $2.2 billion in September.

Could be the result of people stocking up on imports, the buying frenzy continuing for 'tronix, or both. Comments welcome, maybe I'm reading too much into this?

-- Tim (pixmo@pixelquest.com), December 16, 1999

Answers

> Could be the result of people stocking up on imports

The oil demand is the increase and misuse of SUVs. Some laws need to be passed and enforced about that.

The products are, in my own opinion, Y2K related. Coleman products for example are in many cases an import now. We've heard some have purchased seven pair of shoes, others clothes, and I for one certainly purchased little battery run cassette and CD players for long and miserable evenings ecetera.

Ooh and then add how many of us went into the new USB ports/computers and all the peripherals that had to be replaced. If I could have added a laptop I certainly would have done so.

-- Paula (chowbabe@pacbell.net), December 16, 1999.

Paula, with all the running around you do to shop and to scout out the latest supply-in-demand of food and other goods, I would say that you use far more gas in one day than someone who owns an SUV uses in a week. Why don't you park your butt at home and quit wasting gas and motor oil, I'm going to need it during the rollover for my Suburban.

-- Suburbanite (Suburbanite@Suburbaniteee.xcom), December 16, 1999.

Chowbabe:

"The oil demand is the increase and misuse of SUVs. Some laws need to be passed and enforced about that."

I am tired of this line. Sure, people in Riverside, etc, don't need an SUV. But some of us do. Therefore, to satisfy your west coast mentality we punish the people that actually need 4x4's. "The products are, in my own opinion, Y2K related. Coleman products for example are in many cases an import now. We've heard some have purchased seven pair of shoes, others clothes, and I for one certainly purchased little battery run cassette and CD players for long and miserable evenings ecetera."

What you say is true. Some of it may be due to Y2K. Much of it? I doubt it [no data, just my own observation]. It is just the result of the developing "global economy".

"Ooh and then add how many of us went into the new USB ports/computers and all the peripherals that had to be replaced. If I could have added a laptop I certainly would have done so."

Why would a sane business person replace computer equipment or software at this time? Have the money set aside for next year when I know what the problems are going to be. Dealing with Windows updates is a full time job.

Best wi

-- Z1X4Y7 (Z1X4Y7@aol.com), December 16, 1999.

"The oil demand is the increase and misuse of SUVs. Some laws need to be passed and enforced about that."

I'm west-coaster with one of those big SUV's. I already pay a much higher insurance rate then a car owner my same age, even with a spotless record and a defensive driving course. Lumping all SUV drivers in the same boat is as stupid as calling all doomers paranoid right-wing survivalist wackos. (tho my DWGI parents might consider my preps a militia membership) Generalizations like this are what leads to prejudice.

I have a high-efficiency v-6 that gets damn good mileage. A full tank on normal use will last me over two weeks. The secret is to take the bus to work and leave the fully gassed SUV at home. It's reserved for fishing and camping trips in the sierras and Northern California. Sure there are people who drive too much and fill up every other day, but those are the ones that usually don't plan ahead. Even with a 4x4, I still use less gas than most other commuters.

-- CA 4x4 (4x4@my.house), December 16, 1999.

Paula, I have said this before and I will say it again...my SUV saved my life...I would never CHOOSE to drive anything else. Try driving in the floods up here in the Wetlands in a two-wheel drive. I bet you would choose and SUV in a very short amount of time!!!!!!!!!

-- whatswrongwithanSUV? (karlacalif@aol.com), December 16, 1999.