U.S. Sept. trade gap narrows 15%

The U.S. trade deficit declined in September to the lowest level in seven months as exports rebounded while imports shrank, reflecting the smallest monthly foreign oil bill in more than a decade.

The trade deficit narrowed to $40.8 billion in September, down 15% from a $48-billion deficit in August, the Commerce Department reported Wednesday.

Exports rose 1.6% to $187.9 billion, helped by stronger sales of commercial airplanes and jet engines.

Imports contracted 1.8% to $228.7 billion. The big drop in oil prices sent petroleum imports down 8.3% to $13.8 billion, the lowest level since May 2004.

Economists are looking for the deficit to widen in the coming months as a weak global economy and strong dollar puts pressure on exports.

The U.S. deficit with China rose 3.8% to an all-time high of $36.3 billion in September as imports from China hit a record. The U.S. deficit with China is running 8.4% higher than a year ago, on track to set another in a string of annual records. The U.S. deficit with China is the largest with any country.

Through September, the U.S. trade deficit is running 3.9% above last year, when the deficit for the full year totaled $508.3 billion. Economists are looking for a bigger deficit this year, reflecting a drop in exports, which are down 3.8% so far this year.

U.S. producers are facing export head winds amid economic weakness in a number of major export markets. U.S. exports have also been hurt by the rising value of the dollar, which makes American goods more expensive on foreign markets.