Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, June 16, 1993 TAG: 9306160030
SECTION: BUSINESS PAGE: B7 EDITION: METRO
SOURCE: Associated Press
DATELINE: WASHINGTON LENGTH: Medium
"The U.S. trade in services has become extremely important in our international trade statement and performance," said Allen Sinai, an economist and managing director at Lehman Brothers.
The first-quarter deficit in the U.S. current account totaled $20.91 billion, the Commerce Department said. That was down from $23.69 billion during the final three months of 1992, when the deficit jumped 33.3 percent.
The current account is considered the broadest measure of America's international competitiveness because, unlike the monthly merchandise trade reports, it also tracks trade in services and investment flow between the United States and other nations.
The United States also posted a surplus in investment income and a decline in unilateral transfers such as foreign aid. But it had yet another deficit in merchandise trade.
"We see some weakening on the goods position," said David Jones, an economist with Aubrey G. Lanston & Co. The U.S. economy "is recovering before other major economies" and fueling American appetites for foreign goods.
At the same time, the weak economies of many U.S. trading partners are curbing their ability to buy American products.
Japan reported Tuesday that its trade surplus fell 0.1 percent in May, the first decline in 29 months.
The drop from last year's levels included a 2.1 percent decline in the surplus with the United States, the first in 14 months.
Exports fell to $111.63 billion from $113.99 billion in the fourth quarter. But imports grew to $140.70 billion from $139.95 billion.
The surplus in services totaled $14.62 billion, up from $13.43 billion in the final three months of 1992. Receipts totaled $46.30 billion, nearly half of which was for travel and passenger fares.
by CNB