US trade gap shrinks to $40.6bn

Published Dec 4, 2013

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Washington - The US trade deficit narrowed to $40.6 billion in October on a strong rise in exports, the Commerce Department reported Wednesday.

The trade gap fell 5.4 percent from September's upwardly revised number of $43.0 billion.

Exports rose 1.8 percent from September to a record $192.7 billion in October.

Imports were up a modest 0.4 percent at $233.3 billion, their highest level since March 2012.

Imports of crude oil, which account for 10 percent of US imports, rose 0.8 percent to $23.9 billion in October.

The October reading was a hair higher than analyst expectations.

“The trade data suggest that external demand for US goods is improving, suggesting a somewhat stronger global economy, and still resilient US domestic demand,” said Tu Packard of Moody's Analytics.

Year-over-year, the US trade deficit fell 4.9 percent in October. - Sapa-AFP

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