U.S. Trade Gap Narrows More than Expected

The U.S. trade deficit narrowed more than forecast in October as exports grew and imports declined.

The trade gap shrank by 13% to $38.7 billion from a revised $44.6 billion for September, the Commerce Department reported this morning, the smallest gap in nine months. Economists had expected a deficit of $44.5 billion. September's trade gap was originally reported as $44 billion.

Exports rose 3.2% to $158.7 billion, the highest since August 2008, thanks to strong demand for agricultural products and autos. Imports, on the other hand, fell 0.5% to $197.4 billion, amid weaker demand for oil.

The U.S. trade deficit with China fell 8.3% to $25.52 billion in October from the $27.83 billion deficit in September. Still, the trade gap with the country's biggest trading partner was up sharply from the $22.68 billion gap in October 2009.

China, meanwhile, said that its monthly trade surplus was $22.9 billion in November, down from $27.2 billion in October.