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US trade deficit narrows to near three-year low | US trade deficit narrows to near three-year low |
(35 minutes later) | |
The US trade gap with the rest of the world fell to $38.5bn (£24.3bn) in December, a near three-year low, according to the Commerce Department. | |
Record overseas sales of petroleum pushed up exports, while imports dropped. | |
Crude oil imports fell to the lowest level since 1997 during 2012 as a whole. | |
The data suggests that the US economy was stronger in the fourth quarter than initially estimated. | The data suggests that the US economy was stronger in the fourth quarter than initially estimated. |
The figures could result in a revision of the a 0.1% annualised contraction in gross domestic product (GDP) during the quarter, which was initially calculated before these figures were available and were based on projections of a widening trade gap. | |
"The economy did not fare as badly as the initial GDP estimate suggested in the fourth quarter," said Chris Williamson, chief economist at financial information firm Markit. | |
"The data also add to an increasingly bright picture of the global economy at the turn of the year." | |
Total exports rose to $186.4bn, up $3.9bn from November. Imports fell $6.2bn to $224.9bn as less overseas crude oil was bought. | |
China trade gap | |
These figures should add 0.7 percentage points to economic growth during the October-December quarter, according to Jim O'Sullivan, the chief US economist at High Frequency Economics. | |
That would mean an annual growth rate of 0.6%. The next estimate is due on February 28th. | |
However, during 2012 the US trade gap with China increased to $315bn - the largest on record with any country. | |
That fact rankles with American manufacturers who believe the Chinese benefit from an unfairly weak currency. | |
"Congress and the administration must take action on currency manipulation," said Scott Paul, president of the Alliance for American Manufacturing. |