Trade deficit lowest in 28 months
U.S. exports climb to a record high of $140.1 billion as the weak dollar makes American goods more competitive in foreign markets.
WASHINGTON (AP) -- The U.S. trade deficit fell to its lowest level in 28 months as a falling dollar spurred U.S. exports to an all-time high.
The deficit with China jumped to the second-highest level on record as imports of toys and other goods surged despite a rash of safety recalls.
The Commerce Department said Friday that the deficit for September dipped by 0.6 percent from the previous month - to $56.5 billion. That was the narrowest trade imbalance since May 2005 and took economists by surprise. They had been forecasting the deficit would rise.
Dollar falls on Bernanke's warning
The improvement came from a 1.1 percent jump in U.S. exports, which climbed to a record $140.1 billion. The dollar's decline against many major currencies has made U.S. goods cheaper and more competitive in foreign markets. For September, sales of American-made cars, computers and farm products including corn, cotton, wheat and soybeans were all up.
Imports also rose in September, climbing by 0.6 percent to $196.6 billion, the second-highest level on record. Imports of foreign-made cars, televisions and clothing were all up. Oil imports, however, fell by 0.8 percent to $10.5 billion, an improvement that is likely to be temporary given the recent surge in oil prices to close to $100 per barrel.
The deficit with China rose 5.5 percent to $23.8 billion, second only to a $24.4 billion deficit in October 2006. Imports surged to the second-highest level on record, pushed up by big gains in imports of Chinese-made televisions, cell phones, computers and toys as retailers stocked their shelves for Christmas.
Those gains were occurring despite a string of high-profile recalls of Chinese products this year - everything from toys with lead paint to defective tires and chemical-tainted toothpaste and pet food ingredients.
Through September, the trade deficit is running at an annual rate of $703.4 billion, down by 7.4 percent from last year's $758.5 billion. Analysts believe that surging exports from a weaker dollar will lead to a narrowing of the deficit for the full year, breaking a string of five consecutive records. To top of page
U.S. exports climb to a record high of $140.1 billion as the weak dollar makes American goods more competitive in foreign markets.
WASHINGTON (AP) -- The U.S. trade deficit fell to its lowest level in 28 months as a falling dollar spurred U.S. exports to an all-time high.
The deficit with China jumped to the second-highest level on record as imports of toys and other goods surged despite a rash of safety recalls.
The Commerce Department said Friday that the deficit for September dipped by 0.6 percent from the previous month - to $56.5 billion. That was the narrowest trade imbalance since May 2005 and took economists by surprise. They had been forecasting the deficit would rise.
Dollar falls on Bernanke's warning
The improvement came from a 1.1 percent jump in U.S. exports, which climbed to a record $140.1 billion. The dollar's decline against many major currencies has made U.S. goods cheaper and more competitive in foreign markets. For September, sales of American-made cars, computers and farm products including corn, cotton, wheat and soybeans were all up.
Imports also rose in September, climbing by 0.6 percent to $196.6 billion, the second-highest level on record. Imports of foreign-made cars, televisions and clothing were all up. Oil imports, however, fell by 0.8 percent to $10.5 billion, an improvement that is likely to be temporary given the recent surge in oil prices to close to $100 per barrel.
The deficit with China rose 5.5 percent to $23.8 billion, second only to a $24.4 billion deficit in October 2006. Imports surged to the second-highest level on record, pushed up by big gains in imports of Chinese-made televisions, cell phones, computers and toys as retailers stocked their shelves for Christmas.
Those gains were occurring despite a string of high-profile recalls of Chinese products this year - everything from toys with lead paint to defective tires and chemical-tainted toothpaste and pet food ingredients.
Through September, the trade deficit is running at an annual rate of $703.4 billion, down by 7.4 percent from last year's $758.5 billion. Analysts believe that surging exports from a weaker dollar will lead to a narrowing of the deficit for the full year, breaking a string of five consecutive records. To top of page
