WASHINGTON – The U.S. deficit in the broadest measure of trade swelled to an all-time high of $144.9 billion in the first quarter of this year, reflecting Americans’ insatiable appetite for foreign-made goods.
The latest snapshot of trade activity, released by the Commerce Department on Friday, showed that the “current account” deficit was 14.1 percent larger than the $127 billion shortfall registered in the fourth quarter of 2003.
The first-quarter’s deficit figure was bigger than the $139.6 billion trade gap that some economists were forecasting, and exceeded the previous record high of $138.2 billion set in the first quarter of 2003.
“Americans – even with higher prices – like imported goods,” said Clifford Waldman, an economist at the Manufacturers Alliance/MAPI, a research group. “We clearly need to get the value of the dollar down further,” which would make U.S. goods cheaper for foreign buyers, he said.
The current account report is considered the best measure of a country’s international economic standing because it tracks not just the goods and services reflected in the government’s monthly trade reports but also investment flows between countries and unilateral transfers, including U.S. foreign aid payments.
On Wall Street, investors took the report in stride. The Dow Jones industrials gained 38.89 points to close at 10,416.41.
Talk to us
> Give us your news tips.
> Send us a letter to the editor.
> More Herald contact information.
