U.S. Trade Deficit Drops

The U.S. trade deficit narrowed sharply in September to its lowest level in seven months as exports rebounded. This is a tentative sign that the worst of the drag from a stronger dollar may be over, Reuters reported.

The U.S. Commerce Department said last week the trade gap fell 15% to $40.8 billion, the smallest deficit since February.

Lower crude oil prices also helped to curb the import bill.

The drop in the trade deficit was encouraging news compared to August, when the Department reported a $48.3 billion deficit. Since that report, it revised the number to $48 billion.

Economists had forecast the trade gap shrinking to $41.1 billion. When adjusted for inflation, the deficit fell to $57.2 billion in September from $63 billion in the prior month. S