Thursday, April 10, 2008

Government Report on Thursday Expected to Show Slightly Narrowed US Trade Deficit in Feb.

NEW YORK (AP) -- The weak dollar is juicing American exports, which should ease the nation's trade deficit, but spiking energy costs are also playing a role, a government report Thursday morning is expected to show.

American exports have gained strength recently, as a weak dollar makes U.S. goods cheaper abroad. Such international demand has been one of the few bright spots for the U.S. economy.

Slowing domestic growth means less demand for foreign goods, but the surging price of oil is helping to push up the total value of imports. Economists expect a government report Thursday on the trade balance to show the U.S. trade deficit narrowed slightly in February from the prior month.

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