US Trade Deficit Narrows by Most in 5 Years; Deficit with China at Record $23 billion in Sep.
The
U.S. international trade deficit in goods and services narrowed to
$64.3 billion in September 2006, $4.7 billion less than the $69.0 billion
in August, according
to the U.S. Bureau of Economic Analysis. Total September exports were
$123.2 billion and imports were $187.5 billion. The drop of $4.7 billion
in September was the biggest one-month decline since February 2001.
In September 2006, the goods and services deficit was down $0.7 billion from September 2005. Exports were up $16.8 billion, or 15.8%, and imports were up $16.2 billion, or 9.4% from 2005.
However, the total trade deficit is on track to set a record for a fifth consecutive year. Through September, the deficit is running at an annual rate of $781.6 billion, surpassing last year's all-time high of $716.7 billion.
The deficit with China rose to a new record of $23 billion in September, pushed higher by a import of Chinese-made televisions, cell phones and toys. So far this year, the deficit with China is running at an annual rate of $221.7 billion, on track to surpass last year's $202 billion deficit, which had been the biggest deficit ever with a single country.
America's deficit with Canada, the country's biggest trading partner, dropped to $5.7 billion in September. The deficit with the 25-nation European Union fell to $7 billion, down from $11 billion in August.
