The US trade gap plunged by 28.3 per cent in February to $26bn, the lowest level in nearly 10 years as Americans' once voracious demand for the world's goods continued to collapse.

The monthly decline was the sharpest since September 1996 and was pulled down by declining imports of goods and services, which fell for the seventh consecutive month, dropping by 5.1 per cent to $152.7bn from $160.9bn in January. Exports rose by $2bn, or 1.6 per cent, the first increase since last July, commerce department figures showed on Thursday.

The rise in US exports was fuelled by increases in sales of consumer goods, cars and parts. The fall in imports was due to weaker demand for industrial supplies and capital goods. On the year in February exports are off by 16.9 per cent and imports are down by 28.8 per cent.