U.S. trade deficit hits
one-and-a-half year low on rising exports
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[November 04, 2016]
WASHINGTON,
(Reuters) - - The U.S. trade deficit fell to a more than 1-1/2 year low
in September amid rising exports, but a slump in imports pointed to
slowing domestic demand.
The Commerce Department said on Friday the trade gap narrowed 9.9
percent to $36.4 billion, the smallest since February 2015. August's
trade deficit was revised slightly down to $40.5 billion.
Economists polled by Reuters had forecast the trade gap decreasing to
$37.8 billion in September after a previously reported $40.7 billion
shortfall. When adjusted for inflation, the deficit fell to $55.0
billion from $57.4 billion in August.
The data was included in last week's gross domestic product report,
which showed trade contributing 0.83 percentage point to GDP growth in
the third quarter.
Exports were boosted by shipments of industrial supplies and materials,
and consumer goods. Exports of soybeans, which helped power the economy
in the third quarter, fell in September.
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Exports increased 0.6 percent to $189.2 billion in September, the
highest level since July 2015.
Exports of industrial supplies and materials were the highest since
August 2015, while those of consumer goods hit their highest level in a
year.
Still, exports continue to be constrained by the residual effects of the
dollar's surge against the currencies of the United States' main trading
partners between June 2014 and December 2015.
Exports to the European Union increased 6.0 percent, with goods shipped
to the United Kingdom soaring 12.4 percent.
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![](../images/110416pics/busine3.jpg)
Anchored container ships and with other vessels sit offshore near
the ports of Los Angeles and Long Beach December 2, 2012.
REUTERS/Jonathan Alcorn/File Photo
![](../images/ads/current/demay_inv-lda081412.png)
Exports to China rose 1.8 percent.
Imports of goods and services dropped 1.3 percent to $225.6 billion in
September. The decline in imports is consistent with a slowdown in
consumer spending.
Imports from China fell 2.8 percent. The politically sensitive
U.S.-China trade deficit dropped 4.1 percent to $32.5 billion in
September.
(Reporting by Lucia Mutikani; Editing by Andrea Ricci)
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