U.S. trade deficit narrows in September

An increase in exports helped push the U.S. trade deficit for September down to $56.5 billion, marking its lowest point since May 2006, according to a report from the Department of Commerce. U.S. exports increased 1.1% to a record $140.1 billion on record shipments of capital goods, industrial materials and foods. Imports increased 0.6% to $196.6 billion, helped by record imports of capital goods and an increase in the value of petroleum shipments. The deficit with China increased to $23.8 billion from $22.5 billion in August, while the deficit with the European Union fell to $6.4 billion from $10.2 billion in August. Imports from the Organization of Petroleum Exporting Countries fell 4.4% to a record $15.9 billion in August. In a report from the Department of Labor, import prices increased 1.8% in October, marking the largest gain in a year-and-a-half, on a 6.9% increase in petroleum prices. Overall import prices were more than double the 0.8% gain in September. Excluding fuels, import prices rose just 0.3%. Prices for U.S. exports also increased at an accelerating rate, rising 0.9% in October after a 0.3% increase in September.