By Martin Crutsinger
The Associated Press
WASHINGTON — The U.S. trade deficit fell in November to its lowest level in four years, an encouraging sign that economic growth in the final three months of the year was stronger than analysts had forecast.
Gains in energy production and stronger sales of American-made airplanes, autos and machinery lifted exports to an all-time high.
The trade gap dropped 12.9 percent in November to $34.3 billion, the Commerce Department said Tuesday. That’s the lowest monthly trade deficit since October 2009.
Exports rose 0.9 percent to a record $194.9 billion. The gain was aided by a 5.6 percent rise in petroleum exports.
Imports dropped 1.4 percent to $229.1 billion. A decrease in demand for foreign oil offset a record level of imported autos.
A smaller trade deficit can boost economic growth. It typically shows that American companies are earning more from sales overseas, while U.S. consumers are buying fewer products from foreign companies.
Economists raised their growth forecasts for the October-December quarter after seeing the November trade report.
Jennifer Lee, senior economist at BMO Capital Markets, noted that the trade gap declined in both October and November. She is currently forecasting growth at an annual rate of 2.4 percent. But after the trade report she said growth could end up being stronger.
Paul Ashworth, chief U.S. economist at Capital Economics, said growth could be 3 percent or higher.
Through 11 months of 2013, the trade deficit is 12.3 percent lower than the same period in 2012. Exports have strengthened, while imports are slightly lower.
Breaking news, severe weather alerts, AMBER alerts, sports scores from The Norman Transcript are available as text messages right to your phone or mobile device. You decide which type of alerts you want to receive. Find out more or to signup, click here.