Mostly: Classical

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WASHINGTON (CBS.MW) - A strong euro and a strong hurricane helped cut the U.S. trade deficit by 3.7 percent to $51.6 billion in September.

Imports fell 0.8 percent to $149 billion while exports increased 0.8 percent to a record $97.5 billion, the Commerce Department estimated Wednesday.

Despite higher prices, the nation's bill for imported crude oil fell to $11.4 billion because imports were disrupted for a time by a powerful hurricane in the Gulf of Mexico.

The trade deficit with the European Union declined 20 percent to $7.7 billion, while the gap with euro countries plunged 29 percent to $5.7 billion. The value of the euro has strengthened against the dollar, reducing the relative competitiveness of European goods.

Meanwhile, the trade gap with China widened to a record $15.5 billion behind record imports of $18.4 billion.

Economists polled by CBS MarketWatch were expecting, on average, a trade gap of $53.8 billion.

The trade gap in August was revised lower to $53.5 billion from $54 billion earlier. The deficit averaged $51.9 billion per month in the third quarter.

Trade issues have moved to the top of the nation's worry list. The Federal Open Market Committee is expected to raise interest rates at Wednesday's closed-door meeting as it addresses such thorny issues as high oil prices, the value of the dollar, the rising current account deficit, and the loss of manufacturing jobs.

In September, the price of imported oil increased $1.25 to a record $37.62 per barrel. The United States imported 10.12 million barrels of petroleum a day, the lowest since February. For the first nine months of the year, the price of imported petroleum averaged $32.66 a barrel.

The increase in U.S. exports was largely driven by foods and feeds, and industrial materials, including soybeans, organic chemicals, gold and plastics. Exports of capital goods also increased, especially high-tech gear like computers and semiconductors.

Exports of consumer goods rose to a record level of $8.8 billion despite a large drop in exports of pharmaceuticals.

The decrease in imports largely reflected a decline in industrial materials, including fuel oil, organic chemicals and crude oil. Imports of nonpetroleum goods rose to a record $109 billion.

Imports of capital goods increased to $29.5 billion, the highest in nearly four years, driven by stronger demand for drilling and oil field equipment, and civilian aircraft and engines.

Imports of autos increased to a record $19.5 billion, mostly from Mexico. Imports from Canada dropped. Exports of autos fell to $7.7 billion, the second highest ever.