American companies heard good news as exports reached their highest level ever, fueled by the falling dollar.
Leading the export surge were consumer goods, farm products and industrial supplies. The overall increase in American exports was at 0.4 percent, which brought it to the record $138.3 billion.
As a result, the trade deficit dropped by 2.4 percent over July, bringing it down to $57.6 billion for August; the lowest it's been since January 2007. This is the third straight month the deficit has fallen.
Overall the trade deficit, based on the first eight months of the year, should end up at an annual rate of about $708 billion, a decrease of 6.7 percent from last year's $758.5 billion.
The Bush administration also received other good news, as the budget deficit dropped to the lowest level in five years, down to $162.8 billion, improving by $85 billion over the same period in 2006.
Imports also declined by 0.4 percent to finish at $195.9 billion. Most of that was the result of lower car and furniture imports.
The shrinking the budget shows that his tax cuts and economic policies are working to grow the economy, says President Bush.
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