The U.S. trade balance improved during September, shrinking to a gap smaller than expected as imports declined for the first time in seven months and exports rose slightly.

The U.S. deficit in international trade of goods and services decreased by 6.8% to US$64.30 billion from US$68.96 billion in August, the U.S. Commerce Department said today. August’s shortfall was previously estimated at US$69.86 billion.

The September trade deficit was lower than Wall Street expected. Economists had forecast a deficit of US$65.80 billion.

Imports in September declined for the first time since February, sliding 2.1%. The U.S. economy has weakened since the beginning of this year, increasing at a rate of 1.6% July through September after rising 2.6% in the second quarter and 5.6% in the first quarter. U.S. imports decreased to US$187.46 billion in September from US$191.57 billion in August.

The volume of crude oil imports dropped, down to 316.59 million barrels from 343.49 million, and the average price of a barrel of crude fell by US$3.60 to US$62.52. The value of crude oil imports decreased to US$19.79 billion from US$22.71 billion in August.

For September, the deficit with China increased by 4.6% to a monthly record of US$23 billion, reflecting a jump in Chinese imports to a record US$27.6 billion.

Deficits with other major trading partners mostly fell. The trade gap with the euro area fell to US$5.24 billion from US$8.94 billion. The monthly shortfall with Mexico decreased to US$5.84 billion from US$6.23 billion. The trade gap with Canada fell to US$5.67 billion from US$6.07 billion. The deficit with Japan shrank to US$6.73 billion from US$7.47 billion.

U.S. exports rose by 0.5% to a record US$123.16 billion in September from US$122.61 billion in August.

Separately, the number of new applicants for unemployment insurance benefits fell sharply last week, further evidence that labor market conditions remain favorable.

U.S. initial jobless claims fell 20,000 to a seasonally-adjusted level of 308,000 in the week ended Nov. 4. New claims for the week ended Oct. 28 were revised to 328,000 from a previously reported 327,000, the U.S. Labor Department said.