The U.S. trade deficit declined to $8.35 billion in September, the lowest level in nine months, as exports hit an all-time high and the deficit with Japan narrowed to the smallest imbalance in more than two years.
The Commerce Department reported Wednesday that the September trade gap improved 0.1 percent from an $8.36 billion deficit in August, reflecting in part a big surge in sales of American-made autos and auto parts.Exports of goods and services were up 1.6 percent to a record $67.24 billion. This advance helped to offset a 1.4 percent rise in imports, which climbed to $75.59 billion. The trade deficit is the difference between what the country imports and what it sells abroad.
The September improvement caught economists by surprise. Many of them had been expecting the deficit would widen sharply to more than $10 billion, reflecting weak economies overseas and a rebound in domestic demand.
In a separate report, the Labor Department reported Wednesday that the number of Americans filing new claims for unemployment benefits edged up to 371,000 last week from 370,000 the previous week. Both figures, however, were down from the level of 381,000 hit for the week ended Nov. 4.
In another report, the Commerce Department said business inventories rose 0.3 percent in September, the 18th straight increase but a smaller advance than the previous two months. The advance was in line with analysts' expectations and suggests an economy growing at a modest pace.