Oil Exports Help US Narrow Trade Gap

The US trade gap narrowed in October, as rising sales of oil pushed US exports to a record high, the US Commerce Department has said.

The trade deficit shrank to $40.6bn (£24.8bn) from $43bn in September, a drop of 5.4%.

Exports rose 1.8%, while petroleum exports rose 9.3%. The increase broke three months of falling exports.

Meanwhile, the Federal Reserve has said in a report that the economy is growing at a “modest to moderate rate”.

Imports rose by just 0.4% while oil imports were 1.5% higher.

The figures showed US exports to China hit a record high as its trade gap with the Asian power narrowed.

Exports to Canada and Mexico also reached a new high, but imports from the European Union increased and the US’s trade deficit with the EU hit a record.

Analysts say the smaller trade deficit, which was broadly in line with expectations, would help the US economic recovery.

via BBC

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