The U.S. trade deficit dropped to a one and a half year low in September as exports rose however slumping imports identified slowing domestic demand.
The Commerce Department said that the trade gap had been reduced by 9.9 percent to $36.4 billion, this was the lowest since February 2015 whilst the trade deficit in August was revised down to $40.5 billion.
After the previous shortfall of $40.7 billion last month, economists forecast the trade gap would decrease to $37.8 billion in September. When adjusted for inflation, the deficit dropped to $55.0 billion from August’s $57.4 billion.
Exports increased on robust demand for industrial supplies, materials, and consumer goods. Soybeans however which boosted the economy in the third quarter dropped in September.
Exports rose to $189.2 billion a 0.6 percent improvement in September, the highest level since July 2015.
Industrial and material supply exports were at their highest since August 2015 whilst consumer goods hit their highest peak in a year.
As the dollar remains strong against other currencies exports continue to be pressured for trading partners of the U.S.
Exports to the EU rose 6 percent, meanwhile goods sent to the U.K. jumped by 12.4 percent and exports to China rose 1.8 percent.
Goods and services imported into the U.S. fell by 1.3 percent, totalling to $225.6 billion in September. The fall in imports is in line with a slowdown in U.S. consumer spending.
