US trade deficit narrows as exports hit record high
WASHINGTON (REUTERS) - The US trade deficit narrowed in October as exports hit a record high, pointing to a pick-up in global demand that should help to support domestic growth in the fourth quarter.
The Commerce Department said on Wednesday the trade gap fell 5.4 per cent to US$40.6 billion (S$51 billion). September's shortfall on the trade balance was revised to US$43.0 billion from the previously reported US$41.8 billion.
Economists polled by Reuters had expected the trade deficit to narrow to US$40.0 billion in October.
When adjusted for inflation, the trade gap fell to US$48.3 billion from US$51.4 billion the prior month. This measure goes into the calculation of gross domestic product and suggested trade will again contribute to growth this quarter.