The US trade gap—the difference in total value between imports and exports—dropped to a 3-year low in July as exports jumped on a weak dollar and growing overseas demand. The figure fell 0.3% to $59.2 billion, roughly on par with the estimate economists surveyed by Bloomberg foresaw. Said one analyst, “the broad outlook for trade looks quite positive.”
The trade gap with China grew to $23.8 billion, the most since the record $24.4 billion in October. The dollar has dropped 7.9% since 2006 began, and as foreign economies grow, international demand for American cars and machinery is rising. The trade deficit is expected to continue shrinking as the US housing debacle and credit controls check imports.