US deficit reaches record $48bn
Wednesday 11 December 1996
The deficit on trade in goods and services and investment income widened to $47.96bn from $40.21bn in the second quarter. This earlier figure was revised up by more than $1bn from the initial estimate. The shortfall on trade in goods alone jumped to $51.59bn from $46.99bn, putting a figure on recent anecdotal evidence from exporters that the strength of the dollar has hurt their overseas sales.
Yesterday's figures also showed that net foreign investment in US Treasury bonds reached a record $42bn during the quarter, while overseas purchases of other securities rose to $33bn. Purchases of US assets by foreigners climbed more than American purchases of overseas assets. Although this underlined the potential vulnerability of US share prices, the Dow Jones index managed a nine-point gain on the day to end at 6,473. The FTSE 100 index in London closed more than 24 points up at 4,035.7 in very quiet trading.
The pound's index against a range of other currencies was unchanged at 93.2 yesterday evening, reflecting the majority view that the Chancellor of the Exchequer, Kenneth Clarke, will leave interest rates unchanged after his meeting this morning with the Governor of the Bank of England.
Eddie George has said base rates will need to rise in time, but comments last week reassured the City that he would not push Mr Clarke too hard before Christmas.
The Chartered Institute of Marketing yesterday urged Mr Clarke to raise interest rates again to ensure the economy does not return to the rollercoaster ride of the 1980s.
The CIM said the Government needed to take "pre-emptive action".
- 1 Frank Lampard's face drops when Holly Willoughby introduces him as a 'Man City legend'
- 2 Sofyen Belamouadden murder: The inside story of a crime that horrified Britain
- 3 Company breaks open Apple Watch to discover what it says is 'planned obsolescence'
- 4 The Visit: Trailer for M Night Shyamalan's latest horror film is terrifying
- 5 9/11: Iranian General accuses US of organising September 11 terror attacks
General Election 2015: Tories sack candidate who said she would never support 'the Jew' Ed Miliband
9/11: Iranian General accuses US of organising September 11 terror attacks
General Election 2015: Stephen Hawking says he will vote Labour
Manny Pacquiao begs Indonesia president to spare life of drug smuggler Mary Jane Veloso about to be executed
Yazidi sex slaves undergoing surgery to 'restore virginity' after being raped by Isis militants
General Election 2015: Chuka Umunna on the benefits of immigration, humility – and his leader Ed Miliband
The sickening truth about food banks that the Tories don't want you to know
Aaron and Melissa Klein: Oregon anti-gay bakers ordered to pay $135,000 after refusing to make cake for same-sex wedding
Andrew Lloyd Webber: Phantom of the Opera writer mocked after issuing a warning about Ed Miliband and Nicola Sturgeon
General election 2015: Labour will toughen hate crimes legislation surrounding Islamophobia
HSBC review into moving headquarters from UK 'underway'
iJobs Money & Business
£20000 - £60000 per annum: Recruitment Genius: Are you recently QCA Level 4 qu...
£20000 - £22500 per annum + OTE £30K: SThree: SThree Group have been well esta...
£25 - 30k: Guru Careers: We are seeking an Application Support Analyst / 1st L...
£45K - £55K (DOE) + Benefits: Guru Careers: We are seeking a full stack .NET D...