Trade Deficit Worsened in June --- Widening of U.S. Gap Comes as a Surprise To Private Analysts
WASHINGTON -- The U.S. trade deficit swelled to $11.31 billion in June, surprising some analysts, as export growth eased off. But Clinton administration officials stressed that the long-term prospects for U.S. sales abroad remained strong.</br></br>The Commerce Department reported that the trade deficit widened from a revised $11.05 billion in May. Private analysts had expected the June deficit to be somewhat narrower than May's, based on earlier economic reports. Imports in June slowed to a seasonally adjusted $75.79 billion from $76.29 billion in May, but exports also fell, to $64.48 billion from $65.24 billion.</br></br>"This caught us a little bit by surprise. It was a little bit worse than expected," said Brian Horrigan, senior economist at Loomis Sayles & Co. in Boston. He added that the trade deficit would have been wider, had it not been for a decline in crude-oil prices in June.</br></br>For the first half, the trade deficit in goods and services mushroomed to $63.80 billion from $49.94 billion in the year-earlier period.</br></br>Administration officials put the best gloss on the figures, insisting that the important development was the surge in export growth in the first half. Some private analysts agreed, noting that the export trend is at record levels and that continued strength of U.S. imports reflects the strength of the U.S. economy.