Trade Gap
U.S. Trade Gap Narrows by Record Amount in September
WASHINGTON (Reuters) - The U.S. trade deficit narrowed by the largest amount on record in September, with both imports and exports of a broad range of goods and services plummeting in an economy that screeched to a halt after the attacks on the World Trade Center and the Pentagon (news - web sites).
The Commerce Department (news - web sites) said on Tuesday the trade deficit dropped by $8.4 billion in September to $18.7 billion from $27.1 billion in August, the biggest monthly shrinking since January 1992 when the government began tracking these figures. It was also the smallest gap since $18.4 billion in March of 1999.
The September trade report showed sharp declines in international travel, passenger fares and other services, as businesses and consumers -- chilled by the hijacked plane attacks and concerns over anthrax -- kept their wallets snapped shut and stayed close to home.
The U.S. dollar dipped after the trade numbers were released, while debt markets displayed little reaction.
U.S. exports totaled nearly $77.3 billion, down from $84.5 billion, the lowest since March 1999. Imports, also the lowest since March 1999, plunged to $96 billion in September from $111.62 billion.
Service imports decreased by $13.5 billion in September, reflecting $11 billion in insurance claims paid out after the Sept 11 attacks, the Department said.
``That's a pretty sizable decline in the trade gap. Imports were down a lot because of the reinsurance issue after the terrorist attack,'' said Carey Leahey, senior U.S. economist at Deutsche Bank Alex. Brown in New York.
The shrinkage in the September trade deficit was much bigger than expected. Economists in a Reuters poll forecast, on average, that it would dip down to $24.67 billion.
September imports from OPEC (news - web sites) edged down to their lowest level since December 1999, due largely to a decline in demand for petroleum |
