US shatters record annual trade deficit

The United States is plunging deep into a record trade deficit for 2003, data showed Wednesday, but unexpectedly bright November data raised hopes for the year ahead.
With just 11 months of 2003 counted, the US deficit amounted to 446.81 billion dollars, seasonally adjusted, already breaking the full year record of 418.04 billion dollars in 2002.
China accounted for a quarter of the gap. The United States suffered a deficit with China of a staggering 114.09 billion dollars for the first 11 months of 2003, according to a breakdown of the raw data.
The US trade gap in November alone, however, unexpectedly narrowed 8.6 percent from the previous month to 38.01 billion dollars, Commerce Department figures showed.
"We have seen a fairly significant movement in the US dollar, skewed towards the currencies of the industrialised economies," said BMO Financial Group analyst Paul Ferley.
"That will help turn around the trade picture. We are probably going to see this improving trend continue in 2004, with the deficit of 2003 representing a peak." Exports rose 2.55 billion dollars, or 2.89 percent, to 90.63 billion dollars in November from the previous month, boosted by capital goods, consumer goods and feeds. Automobile related exports declined.
Imports eased 1.021 billion dollars or 0.79 percent to 128.64 billion dollars in the month, with lower foreign intake of US industrial supplies, consumer goods and automobiles.
A breakdown of raw, unadjusted figures for November showed: - The deficit with China narrowed to 10.82 billion dollars in November from 13.57 billion dollars in October.
-- The US trade gap with the 12-country euro area eased to 6.01 billion dollars from 6.41 billion dollars. With the whole European Union, the deficit narrowed to 7.35 billion dollars from 8.68 billion dollars.
-- With Japan, the US deficit was cut to 5.73 billion dollars from 6.44 billion dollars in October.
-- In trade with Hong Kong, South Korea, Singapore and Taiwan combined, the US deficit was trimmed to 1.58 billion dollars in November from 2.31 billion dollars in October.
-- The deficit with Canada eased to 4.23 billion dollars from 4.75 billion dollars.