Trade Gap Shrinks To $8.35 Billion Exports Of Cars, Computers, Machinery Help To Cut Deficit

The U.S. trade deficit narrowed to $8.35 billion, the lowest level in nine months, as sales of cars, computers and heavy machinery pushed American exports to an all-time high. The trade gap with Japan shrank to its lowest level in more than two years.

The Commerce Department reported that the September deficit in goods and services was down 0.1 percent from an $8.36 billion imbalance in August. Both months reflected big improvements from the record monthly deficit of $11.28 billion in June.

The Clinton administration hailed the improving deficit as proof its trade policies are working.

“Since the beginning of the administration, President Clinton has pursued a trade policy that aggressively promotes exports and presses for open markets abroad,” Commerce Secretary Ron Brown said. “This policy is the cornerstone of an improved balance of trade.”

So far this year, the deficit in goods is running at an annual rate of $182 billion, which would far surpass the previous merchandise record of $159 billion set in 1987.

The September trade figure was among a batch of economic reports released Wednesday as the government sought to catch up following last week’s shutdown.

The Labor Department said that the number of Americans filing new claims for unemployment benefits climbed to 371,000 last week, pushing the four-week average up to 372,250, its highest point since late July.

In a third report, the Commerce Department said that the stockpile of unsold business inventories climbed 0.3 percent in September, slightly slower than in July and August.

Analysts said the combination of reports reflected an economy that was slowing from its summer pace.

The September trade report said exports of goods and services were up 1.6 percent to a record $67.24 billion, with strong gains recorded in overseas sales of cars, computers and industrial machinery.

Imports were up as well, rising by 1.4 percent to $75.59 billion. The increase in imports was led by a 5 percent rise in oil imports, which climbed to $5.29 billion.