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US trade gap widens unexpectedly | US trade gap widens unexpectedly |
(about 2 hours later) | |
The US trade deficit unexpectedly widened in September by the largest amount in 10 years, figures show. | The US trade deficit unexpectedly widened in September by the largest amount in 10 years, figures show. |
The trade gap, the difference between US imports and exports, grew 18.2% to $36.5bn (£21.9bn) from August. | The trade gap, the difference between US imports and exports, grew 18.2% to $36.5bn (£21.9bn) from August. |
Imports rose 5.8%, the biggest jump since 1993 and an indication that consumer spending is recovering. | Imports rose 5.8%, the biggest jump since 1993 and an indication that consumer spending is recovering. |
Separately, US consumer confidence figures unexpectedly fell. The Michigan survey of consumers fell to 66.0 in November - down from 70.6 in October. | |
Politically sensitive | |
The trade deficit had fallen sharply this year as the US economy went through a deep recession and the US dollar plummeted in value. | The trade deficit had fallen sharply this year as the US economy went through a deep recession and the US dollar plummeted in value. |
The latest figures show that the politically-sensitive trade gap with China widened 9.2% to $22.1bn in September as imports surged. | The latest figures show that the politically-sensitive trade gap with China widened 9.2% to $22.1bn in September as imports surged. |
US President Barack Obama is on his first Asian tour this week, and will meet Chinese President Hu Jintao on Tuesday. | US President Barack Obama is on his first Asian tour this week, and will meet Chinese President Hu Jintao on Tuesday. |
The US has maintained that China keeps its currency, the yuan, artificially cheap to make its exports more competitive. | The US has maintained that China keeps its currency, the yuan, artificially cheap to make its exports more competitive. |
The trade gap with China has narrowed by 15.9% in the first nine months of the year, much less than its 79.6% drop with Canada and 42% decline with the European Union. | The trade gap with China has narrowed by 15.9% in the first nine months of the year, much less than its 79.6% drop with Canada and 42% decline with the European Union. |
US imports from the oil cartel Opec rose to $11.9bn in September, the highest since November 2008. | US imports from the oil cartel Opec rose to $11.9bn in September, the highest since November 2008. |
'Grim reality' | |
Meanwhile, the closely watched University of Michigan consumer confidence survey now stands at the lowest since August. | |
Figures indicate that in November, sentiment fell to 66.0 - below economists' forecasts of 71.0 and lower than the reading of 70.6 in October. | |
The accompanying statement said this was down to "the grim financial realities faced by consumers as well as weaker economic prospects for the year ahead". | |
It also pointed out that the decline in confidence was already in place before last week's announcement that the unemployment rate had risen to 10.2%. |
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