US foreign trade deficit narrows a bit more quickly than expected in October

America's shortfall on trade with the rest of the world narrowed a bit more than expected in September.

According to the Department of Commerce, in seasonally adjusted terms, the foreign trade balance shrank at a month-on-month pace of 4.7% to reach $63.9bn.

Economists had penciled-in $64.3bn of red ink.

Exports jumped by 2.6% on August to $176.4bn, but imports were up by only 0.5% at $240.2bn.

The lion's share of the improvement was the result of a $3.1bn decrease in the deficit on trade in goods, while the surplus on trade in services widened by $0.1bn to $16.8bn.

Exports of good increased by roughly $3.7bn to $122.8bn led by a $1.4bn in overseas sales of soybeans and a $1.4bn jump in those of capital goods, with the latter roughly evenly split between Telecommunications equipment, Industrial engines and Computer accessories.