US August trade deficit narrows to $30.7 billion
10 Oct 2009
The US exports increased for the fourth straight month in August 2009, narrowing its trade deficit by an unexpected 3.5 per cent to $30.7 billion, data released by the US Trade Commission showed.
US imports fell following a big drop in demand for oil imports amidst signs that the global economy has started to recover from a recession. Analysts, however, expect the US trade deficit to rise with rising imports in the coming months as the economy rebounds.
US exports of goods and services edged up 0.2 per cent to $28.2 billion in August, the highest level since December last year.
The export push was led by US farm goods such as soybeans and wheat, as also an increase in sales of autos and auto parts, industrial engines and telecommunication equipment.
A near-12 per cent fall in the value of the dollar has also helped US exports rise. The greenback is expected to remain under pressure in coming months as well, due partly to soaring US budget deficits.
For the first eight months of the current year US trade deficit has been running at an annual rate of $357 billion, against last year's $695.9 billion.
The decline is attributed to a general fall in demand for imported goods.