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WASHINGTON : The US trade deficit fell 3.5 percent in August to 59.1 billion dollars amid a drop in imports and weaker oil prices, government data showed Friday.
The report reflected softer economic conditions in the United States that limited imports, but also weaker conditions abroad that put a dent in exports, analysts said.
The Commerce Department report was roughly in line with forecasts for a deficit of 59 billion dollars.
Exports fell 2.0 percent in the month, the first decline since March, a sign of weaker global economic conditions and a firmer dollar. But imports fell by 2.4 percent, a result due in part to the sharp drop in petroleum costs.
The report showed exports of 164.7 billion dollars and imports of 223.9 billion. However, imports excluding petroleum rose to a record 144.2 billion dollars.
The politically sensitive deficit with China rose to 25.3 billion dollars, the highest since October 2007, with imports from China hitting a record 31.8 billion dollars.
The report highlighted the growing importance of US exports in an economy that has been slammed by a housing collapse and credit crunch. This is likely to be one of the few bright spots for US gross domestic product amid fears of a recession.
The latest data offers "some upside risk to our forecast of zero growth in the third quarter," said Brian Wesbury at First Trust Portfolios.
"Despite the global nature of the recession/slowdown, we expect the trade sector to continue to contribute substantially toward US growth through at least the end of 2009."
"The narrowing of the trade gap in the third quarter in real terms is a product of robust export growth and puts trade on a track to add 1.0 to 1.5 points to real GDP growth in the third quarter," said John Ryding and Conrad DeQuadros in a research note from RDQ Economics.
"Trade and inventories may offset much of the weakness of consumer spending in the third quarter. However, given the global slowdown, export growth is likely to slow sharply and companies are likely to want to shed inventory in the fourth quarter. Growth is likely to be very weak in the fourth quarter."
- AFP/so
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