*EPF210 12/14/2004
U.S. Trade Deficit Grows to Another Record as Oil Prices Rise
(Gap increased 9 percent from September level) (880)

Washington -- The U.S. monthly trade deficit widened to a record $55.5 billion in October as imports, especially for oil, increased more than exports, the Department of Commerce says.

The monthly deficit increase was $4.5 billion --- or roughly 9 percent -- from September's revised estimate, the department said. The October deficit comprised a goods trade deficit of $59.7 billion and a services trade surplus of $4.2 billion.

In a December 14 press release the department said imports increased $5.1 billion to $153.5 billion in October while exports increased just $0.6 billion to $98.1 billion.

U.S. exports were up for the fourth consecutive month, in part likely because of the continuing fall in the exchange rate value of the dollar.

Most of the increase in October imports was accounted for by increases in oil and other petroleum products and consumer goods, especially pharmaceutical preparations. In October, average crude oil prices went up to $41.79 a barrel from $37.62 a month earlier. Decreases in imports occurred in other goods, foods, feed, beverages, and automotive vehicles and parts, Commerce said.

Bilateral deficits in trade of goods increased in October with China, the European Union and Mexico. The deficit with China hit $16.8 billion on record imports of $19.7 billion. The next largest deficit was with Japan at $5.9 billion.

The previous record high U.S. trade deficit of $55.3 billion was recorded in June.

Following are some key figures:

U.S. GOODS AND SERVICES EXPORTS, IMPORTS AND TRADE BALANCE
Millions of dollars, on a balance of payments basis, seasonally adjusted

Trade
balance Exports Imports

Jan.-Oct. 2003 -412,509 840,302 1,252,811
Jan.-Oct. 2004 -500,495 947,798 1,448,293

October 2003 -41,490 88,107 129,596
October 2004 -55,464 98,061 153,526

U.S. GOODS EXPORTS, IMPORTS AND TRADE BALANCE
Millions of dollars, on a balance of payments basis, seasonally adjusted

Trade
balance Exports Imports

Jan.-Oct. 2003 -454,287 587,434 1,041,721
Jan.-Oct. 2004 -540,760 667,197 1,207,957

October 2003 -46,176 61,170 107,345
October 2004 -59,681 69,352 129,034

U.S. SERVICES EXPORTS, IMPORTS AND TRADE BALANCE
Millions of dollars, on a balance of payments basis, seasonally adjusted

Trade
balance Exports Imports

Jan.-Oct. 2003 41,778 252,868 211,090
Jan.-Oct. 2004 40,265 280,601 240,336

October 2003 4,686 26,937 22,251
October 2004 4,217 28,709 24,492

U.S. GOODS EXPORTS, IMPORTS AND TRADE BALANCE, BY COUNTRY
Millions of dollars, on a Census basis, not seasonally adjusted

Bilateral October October
balance exports imports

Total -61,151 73,849 135,000

North America -10,035 27,189 37,224
Canada -5,628 17,067 22,695
Mexico -4,407 10,122 14,529

European Union (25) --9,335 15,356 24,692
Western Europe -9,897 16,360 26,257
Euro Area (2) -7,080 11,502 18,582
European Union (15) -8,946 15,031 23,977
Austria -297 218 515
Belgium 422 1,458 1,036
Finland -165 183 348
France -1,031 2,086 3,117
Germany -4,277 2,866 7,143
Italy -1,318 965 2,283
Netherlands 940 2,244 1,304
Spain -71 594 664
Sweden -723 317 1,040
United Kingdom -974 3,062 4,036
Other EU -1,451 1,040 2,492

European Free Trade
Association -722 962 1,684
Norway -501 136 637
Switzerland -202 802 1,004
Other EFTA -19 24 43
Other Western Eur. -229 367 595

Eastern Europe, Former
Soviet Reps. --1,359 941 2,300
Hungary -89 94 183
Poland -78 77 155
Former Sov. Reps. -969 609 1,578
Russia -947 285 1,233
Other FSR 22 323 345
Other Eastern Europe -223 102 384

Pacific Rim -27,448 18,428 45,877
Australia 646 1,310 664
China -16,776 2,941 19,718
Japan -5,862 5,274 11,135
Newly Industrialized
Countries -2,509 6,993 9,502
Hong Kong 438 1,401 963
South Korea -1,989 2,107 4,096
Singapore 141 1,543 1,402
Taiwan -1,098 1,942 3,040
Other Pacific Rim -2,947 1,911 4,858

South/Cent. America -3,597 5,671 9,268
Argentina -74 301 375
Brazil -776 1,195 1,971
Colombia -286 414 700
Other S/C America -2,462 3,761 6,223

OPEC -7,190 2,268 9,464
Indonesia -692 256 949
Nigeria -1,388 286 1,675
Saudi Arabia -1,866 461 2,327
Venezuela -2,038 483 2,521
Other OPEC -1,211 781 1,992

Other countries -4,415 3,665 8,081
Egypt 185 326 142
South Africa -77 396 473
Other -4,523 2,943 7,466

NOTE: Data on a Census basis reflect movement of goods into and out of the United States through U.S. Customs Service stations. Balance-of-payments basis data adjust Census data to include products that bypass Customs, such as exports of military aircraft and imports of electricity from Canada.

(Distributed by the Bureau of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)

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