U.S. Exports Surge Despite Financial Woes
The sliding value of the dollar has driven US export sales to record highs with the US trade deficit plunging to its lowest level in more than two years, even as worries grow over a surge of mortgage losses, credit write-downs, and fluctuating stock values.
US Commerce Department (DOC) figures released yesterday show that the trade deficit for September dipped by 0.6% to $57 billion from the previous month.
That was the narrowest trade imbalance since May 2005 and took many economists, who had forecasted that the deficit would rise would rise, by surprise.
The improvement in the deficit, the DOC said, came from a full 1% jump in US exports, which climbed to a record $140 billion. The dollars' decline against many major currencies has made US goods cheaper and more competitive in foreign markets.