Trade figures (Sept)

Trade deficit: $18.7bn US imports: $96bn US exports: $77.3bn

As a result, the US trade deficit narrowed to $18.7bn during September, compared with $27.1bn in August.

This 31% decline was the sharpest improvement in the figures since records began in 1992, the US Department of Commerce said.

A 30-month low

The current trade gap between imports and exports now stands at the lowest level for 30 months.

Falling demand for air travel dents imports

The deteriorating condition of the US economy has hit both imports and exports.

Imports fell by 14% in September - the sixth consecutive decline - to $96bn, while exports sank by 8.5% to $77.3bn.

The overall dip in imports was also driven by falling demand for airfares on trans-Atlantic routes, as well as foreign cars and computers.

In addition, the slowdown in economies outside the US has diminished demand for American exports such as commercial aircraft and computer equipment.

A mild recession?

Some economists believe that the US is suffering a mild recession, but they predict that a recovery will begin sometime next year.

The overall economy declined at an annual rate of 0.4% in the July to September quarter.

Also on Tuesday, the New York-based Conference Board indicated that economic conditions could improve.

The Board's Index of Leading Economic Indicators inched up to a figure of 109.4 in October, following a 0.5% decline in September and a 0.1% slip in August.

Mixed signals

The index looks at where the US economy is headed in the next three to six months.

Analysts had been expecting no change in the index for last month.

While the labour and housing markets are still struggling, stock prices have enjoyed a recent rally.

This has been attributed to aggressive action by the Federal Reserve, which has cut US interest rates 10 times this year to 2.0%.