U.S. Trade Deficit Rises, Exports Slip

Manufacturing.net (Crutsinger) - The U.S. trade deficit rose to the highest level in 16 months as exports fell for the second time in three months, a potentially worrisome sign that Europe's debt troubles are beginning to crimp American manufacturers...U.S. manufacturing has been a standout performer as the U.S. recovers from the worst recession in decades. But the concern is that Europe's debt crisis will slow growth in that part of the world and dampen demand in a key U.S. export market.

Even before the debt problems hit Europe, economists were forecasting that America's trade deficit would widen this year as a rebounding U.S. economy boosts demand for foreign goods from the lows hit last year when the country was struggling to emerge from the worst recession in decades...As usual, the U.S. deficit with China was the largest for any single country, a distinction that has attracted attention in Congress, where Chinese critics contend that Beijing is engaging in unfair trade practices which are costing U.S. manufacturing jobs.