The US trade deficit narrowed sharply in September, aided by a slide in the value of the dollar, which helped push exports to record levels, a government report showed on Wednesday. The monthly trade gap totalled $51.6 billion, down from a revised $53.5 billion in August, the Commerce Department said. Economists had forecast the September trade deficit would come in at $53.5 billion, only slightly lower than the original estimate for August of $54.0 billion.
The narrower-than-expected shortfall brightened expectations for third-quarter US economic growth.
But it did little to ease worries about the overall trade deficit which is on track to exceed $500 billion this year.
The dollar slid to record lows against the euro after the trade report, but it reversed direction and posted gains after the Federal Reserve, as expected, raised interest rates for the fourth time this year.
Major US stock indexes closed little changed and bond prices fell, as the market analysts expect another rate hike in December.
The Federal Reserve raised its federal funds rate target by a quarter percentage point to 2 percent, in a move partly aimed at keeping inflation in check as the US economy picks up steam.
The rise in exports to a record $97.5 billion and the slight drop in imports to $149.0 billion show the effects of the weaker dollar and the slow down in economic activity earlier this year, he said.
Soaring oil costs pushed the price of goods imported into the United States up 1.5 percent in October, or nearly double Wall Street forecasts, the Labour Department said in a separate report. With oil prices hitting a record in October, the cost of petroleum product imports climbed 11.7 percent last month.