The United States trade gap narrowed in September, with American exports at their highest level in the last two years. The deficit with China remained the largest, although it shrank slightly.
Concerns have been rising within the Obama administration about China's trade dominance and its effect on the global economic recovery. Although China has been pressing to allow its currency to appreciate, which would make American exports more competitive, China only increased slightly, because officials say they have to worry first about job creation and stability.
New figures showed that the overall deficit was pushed down by fewer imports of consumer goods, autos and automobile parts, and an increase in American exports.
Nigel Gault, the chief United States economist for IHS Global Insight, said "the narrower deficit means that trade will not be as big of a drag on third-quarter growth as first estimated, meaning that GDP growth estimates could be revised up to 2.3 percent from 2 percent. And exports could accelerate, helped by growth in emerging markets with a weaker dollar."
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