WASHINGTON — A record decline in the price of crude oil helped to push the U.S. trade deficit down to the lowest level in nearly a year, even though the deficit with China shot to an all-time high.
The Commerce Department reported Thursday that the trade deficit fell by 4.4 percent to $56.5 billion in September, the smallest imbalance since October 2007. The better-than-expected improvement reflected a 15.7 percent fall in petroleum imports as the average price for imported crude oil dropped by a record $12.41 a barrel and the volume of shipments fell to the lowest level in more than five years.
The big drop in oil imports helped slash overall imports by 5.6 percent to $211.9 billion. Demand for imported goods fell a record amount, reflecting the downturn in the economy, which many analysts fear is headed for a prolonged recession.
Bucking the overall downward trend, imports from China shot up in September, led by huge gains in shipments of TVs, toys and games as retailers stocked up for the holidays. That big jump, combined with a sharp drop in U.S. exports to China, resulted in a record overall trade gap between the two nations of $27.8 billion.
