The U.S. trade deficit narrowed 6.8 percent in September, the largest monthly amount in over five years, as oil import prices fell for the first time in five months and U.S. exports grew to a new record, the Commerce Department reported Thursday. The trade imbalance totaled $64.3 billion, down from a record $69 billion in August. The $4.7 billion drop was the largest monthly decline since February 2001. The narrowing of the trade gap reflected a $3.1 billion drop in foreign oil purchases, which fell 10.5 percent to $26.3 billion. The average price for imported oil dropped to $62.52 a barrel in September from $66.12 in August as the U.S. summer driving season ended and oil inventories rose. The volume of oil imports also declined in September. The decline in oil imports helped to push total imports down by 2.1 percent to $187.5 billion in September, while U.S. exports grew 0.5 percent to a record high of $123.2 billion, with strength in commercial aircraft, railway equipment, and industrial engines. Despite the month's improvement, the U.S. trade deficit is on track to set a record for a fifth consecutive year. Through September, the deficit is running at an annual rate of $781.6 billion, surpassing last year's record high of $716.7 billion. The politically sensitive deficit with China rose to a new record of $23 billion, pushed higher by a flood of Chinese-made televisions, cellular telephones, and toys. So far this year, the bilateral deficit with China is running at an annual rate of $221.7 billion, on track to surpass last year's $202 billion imbalance, which had been the largest deficit ever with a single country. The U.S. deficit with Canada-the nation's largest trading partner-dropped to $5.7 billion in September, down from $6.1 billion in August. The deficit with the 25-nation European Union fell to $7 billion, down from $11 billion in August.
