Trade deficit at lowest level in 19 months
WASHINGTON — The U.S. trade deficit fell in September to the lowest level in 19 months as demand for U.S.-made airplanes and other exports increased while imports slipped. The politically sensitive deficit with China declined.
The overall deficit narrowed to $36.4 billion in September, down 9.9 percent from August, the Commerce Department said Friday.
Exports rose 0.6 percent to $189.2 billion, the highest level in more than a year. Imports fell 1.3 percent to $226.6 billion.
The latest report offers American manufacturers an encouraging sign that the problems caused by overseas weakness and a rising dollar were beginning to wane. A falling trade deficit boosted the overall economy in the July-September quarter. Economists are looking for further gains in the coming months.
Trade has been a contentious issue in the presidential election campaign. Republican Donald Trump has accused China and other nations of pursuing unfair practices that have lowered U.S. wages and cost millions of U.S. jobs.
Both Trump and Democrat Hillary Clinton have come out against the Trans Pacific Partnership, a big regional trade deal which is pending before Congress.
On Wall Street Friday, the slow, steady retreat of the stock market ahead of the 2016 election continued, with the market falling for a ninth straight day. Wall Street is now in its longest period of decline in more than three decades.
Investors point to Trump for the drop.
With only a few days left until the election, Clinton is still leading in national polling, but Trump appears to have considerably narrowed the gap.
Investors like certainty, and Clinton is seen as likely to maintain the status quo. Trump’s policies are less clear, and the uncertainty has caused jitters in financial markets.