WASHINGTON, Nov 9: Record exports helped narrow the US trade deficit in September to its lowest in more than two years, indicating faster US economic growth in the third quarter than previously forecast.

The trade gap shrank to $56.5 billion in September, the lowest since May 2005, despite a record high price for imported oil, a commerce department report showed on Friday.

Wall Street analysts had pegged the trade deficit at $58.5 billion in September, up from the Commerce Department’s initial estimate of $57.6 billion for August.

“The September trade figures will push revisions to Q3 GDP growth upward. So we’re probably looking at GDP growth of 4.5 per cent for the third quarter,” said Brian Fabbri, managing director for economic research at BNP Paribas in New York.

In its first estimate of third-quarter gross domestic product, the commerce department last week estimated economic growth at an annual rate of 3.9 per cent.

The report was more proof that a weak US dollar is boosting exports of goods and services, which rose for a seventh consecutive month to a record $140.1 billion.

US exports to Canada, Mexico, France, Germany, China and Japan all showed gains through the first nine months of 2007.

Exports to the European Union have risen 16.5 per cent to $183.8 billion through September, helping reduce the trade gap with the economic bloc by 12.7 per cent.

The trade gap might have been lower if not for record prices for imported oil, which averaged $68.51 in September.—Reuters