The US trade deficit soared to a record in 2005 for the fourth year in a row. The United States imported $725.8 billion more in goods and services than it exported last year, the Commerce Department reported. That is up 17.5% from last year, and it is an all-time high not only in dollar terms but as a proportion of the economy; the figure is equal to 5.8% of gross domestic product. For December alone, the trade gap increased to $65.7 billion from a revised $64.7 billion in November. That is the third highest monthly deficit ever. Although the gap with China accounts for more than a quarter of the total deficit, the imbalance is spread across a wide variety of trading partners. The US trade deficit with the European Union was $122.4 billion last year; with Japan it was $82.7 billion; with Canada, $76.5 billion; with Mexico $50.1 billion; and with nations belonging to the Organization of Petroleum Exporting Countries, it was $92.7 billion. The imbalances reinforce the view held by many economists that the widening trade deficit stems primarily from a reduction in US national savings in recent years, including the deterioration in the federal budget deficit. Manufacturers Upbeat About 2006Economic growth in the United States will continue in 2006, say the nation's purchasing and supply management executives in their 70th Semiannual Economic Forecast. Expectations in manufacturing for 2006 are high as 75% of survey respondents expect revenues to be greater in 2006 than in 2005.   American Wire Producers Association |
