Trade deficit lowest in 28 months

The weak dollar has an advantage: American goods become more competitive in foreign markets. The trade deficit fell to an all time low as a falling dollar spurred US export to an all time high. The Commerce Departement said that the deficit for September decreased to $56.5 billion, that's a decrease of 0.6%. This surprised many economists since they predicted a rise in the deficit.
The improvement came from a jump in US exports wich rose to a record $140.1 billion. Because the dollar is weak against most other major currencies the US goods are cheaper and therefor more competetive in foreign markets. Import also rose in September, climbing by 0.6% to $196.6 billion. Most imports were up except for the oil import, this fell by 0.8%.
In September the trade deficit ran at an annual rate of $703.4 billion, down by 0.7% from last year's $758.5 billion.

This is once again good news for the US. This is a good example of some of the most basic theory's about the economy. A weak currency makes your products cheaper oversea's wich shows an increase in export. And for a country like the US, with a trade deficit of $703.4 billion,
this is always good news. Any oppertunity to decrease this deficit is worth taking. This is also a good example for Bush to use when he promotes more foreign trade policies.
This might once again be a sign that the American economy will recover from there recent setback.

Nico Cottry

Source: http://money.cnn.com/2007/11/09/news/economy/bc.economy.ap/index.htm?postversion=2007110908