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The new figures underscore ''a much better showing than had been expected.''

WASHINGTON, DC – 10/12/07 – Record high exports and a weak dollar are being credited with plunging the US international trade deficit to its lowest level in seven months, according to figures released this week by the Department of Commerce (DOC).

The deficit in goods and services decreased to $58 billion in August from $59 billion (revised) in July, as exports increased and imports decreased during the period.

Exports, the DOC said, increased 0.4% to $138.3 billion in August, up from $138.0 billion in July, with the deficit increasing with Mexico and decreasing with Canada, China, and the European Union.

The total trade in goods was valued at $99 billion in August, up from $98.6 billion in July, while service exports totaled $39.4 billion in August, up from $39.1 billion the same month.

Imports decreased to $196 billion in August from $196.7 billion in July with goods amounting to $165.5 billion in August, down from $166.4 billion the previous month, and with service imports virtually unchanged from July at $30.4 billion.

For goods, the deficit was $66.6 billion in August, down from $67.8 billion in July. For services, the surplus was $9.0 billion in August, up from $8.8 billion in July.

The July to August change in goods exports “reflected increases in industrial supplies and materials; foods, feeds, and beverages; and consumer goods,” the DOC said.
Decreases were seen in automotive vehicles, parts, and engines; “other goods;” and capital goods.

The seven-month change in imports of goods “reflects decreases in industrial supplies and materials; automotive vehicles, parts, and engines; and consumer goods with increases in capital goods; ‘other goods;’ and foods, feeds, and beverages.”

The increase in services exports “mostly reflected an increase in travel, while changes in other categories of services exports were small” with services imports “reflecting small and nearly offsetting changes in all categories.”

The goods deficit with Mexico increased from $5.6 billion in July to $6.9 billion in August.

An increase in exports south of the border to $1.1 billion – primarily automotive vehicles and parts and semiconductors and electric components – to $12.3 billion was offset by a surge in imports from Mexico which grew $2.4 billion – mainly automotive vehicles and parts and TVs and VCRs – to $19.2 billion.

The country’s trade deficit with Mexico jumped 24% to a record of $6.9 billion while the deficit with Canada, the country's biggest trading partner, edged down almost 7% to $5.3 billion.

The deficit with the European Union fell by 21% to $10.2 billion while the imbalance with Japan dropped 16% to $6.7 billion.

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