The U.S. trade deficit plunged 10% in September to a 19-month low, aided by a fourth straight increase in exports that gave the economy a boost in the third quarter.
The nation’s trade gap shriveled to $36.4 billion from a revised $40.5 billion in August, the government said Friday. Economists polled by MarketWatch had expected the trade gap to total a seasonally adjusted $36.9 billion.
Exports rose 0.6% to $189.2 billion and hit the highest level since the summer of 2015 despite a sharp pullback in shipments of soybeans. American companies exported more consumer goods, aircraft and industrial supplies.
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The value of soybean exports, as expected, fell back to $3.2 billion after topping a whopping $5 billion for two straight months. U.S. farmers benefited from a onetime windfall after a subpar crop yield in South America.
U.S. imports dipped 1.3% in September to $225.6 billion to mark a four-month low. The monthly trade deficit with China declined by $2.2 billion to $26.9 billion.
The size of the trade deficit in the third quarter average $38.8 billion a month, the smallest since the beginning of 2014. The lower trade gap contributed to a 2.9% advance in gross domestic product in the third quarter that was the biggest gain in two years.
The trade outlook, however, is unlikely to continue to improve. A strong dollar is still weighing on U.S. exports and Americans are likely to snap up cheaper imports during the holiday season.
