U.S. Trade Gap Grew Slightly In September --- Increase in Imports of 3.2% Offset 2.9% Export Gain; Mosbacher Hails News
WASHINGTON -- The U.S. merchandise trade deficit widened slightly to $6.79 billion in September, the Commerce Department said, with modest increases in both exports and imports.</br></br>The Commerce Department said exports increased by 2.9% to $35.43 billion in September while imports rose by 3.2% to $42.22 billion. The August deficit was $6.53 billion.</br></br>The Bush administration hailed the news as an indication of economic recovery. "The slight increase in the overall deficit reflected a growing U.S. economy, with strong purchases by Americans of consumer and capital goods," said Commerce Secretary Robert Mosbacher in a statement. "With three quarters of 1991 in the bank, a very good trade year is shaping up."</br></br>But several private economists suggested Mr. Mosbacher's analysis was overly optimistic, particularly on the import side. Bruce Steinberg, senior economist with Merrill Lynch & Co. in New York, said the growth in imports doesn't really reflect a pickup in consumer demand, but rather the purchase of previously ordered goods. "Unfortunately, most of the increase in imports was in retail inventories, {orders made} when people thought the recession was over," said Mr. Steinberg.</br></br>Other government reports suggest that increases in domestic demand noticed earlier in the year have begun to taper off.