The U.S. trade deficit unexpectedly narrowed in September to the lowest level this year as exports surged to a record high.
The shortfall shrank 4 percent to $43.1 billion from a revised $44.9 billion in August that was smaller than initially reported, the Commerce Department said in Washington. Exports climbed 1.4 percent, while imports rose 0.3 percent.
A smaller September U.S. trade bill may mean a bigger contribution to third-quarter growth. The gain in imports may signal retailers such as Gap Inc. are keeping a lid on inventories entering the holiday shopping season with unemployment at 9 percent and stagnant wages.
``Exports have held up okay in recent months, but I'm concerned it won't last going into next year,'' Paul Dales, a senior U.S. economist at Capital Economics Ltd. in Toronto, said before the report.
A $46 billion trade gap was projected for September after an initially reported $45.6 billion in August, according to the median forecast of 76 economists surveyed by Bloomberg News. Estimates ranged from deficits of $42 billion to $49.5 billion.
After eliminating the influence of prices to render the figures used in calculating gross domestic product, the trade deficit averaged $45.8 billion in the third quarter. The number was less than the $47.2 billion deficit average in the second quarter.
Before today's release, Commerce Department figures last month showed a narrower deficit contributed 0.2 percentage point to the 2.5 percent increase in third-quarter economic growth.
