US deficit widens more than forecast

[zengrifter]

US deficit widens more than forecast

September 19, 2006

The US current account deficit widened more than forecast last quarter to the second-largest on record as the trade gap expanded and more interest was paid to overseas investors, a government report showed.

The $US218.4 billion ($290 billion) shortfall in the current account, the broadest measure of trade because it includes transfer payments and investment income, followed a revised $US213.2 billion first-quarter gap that was larger than initially reported, the Commerce Department said last night.

The growing deficit poses a risk to the economy should investors sour on US assets and diversify to other countries because it may weaken the dollar and push interest rates higher.

...continued - http://www.theaustralian.news.com.au...-643%2C00.html