Summary The trade deficit in the US probably narrowed in Nov as fuel imports dropped and exports rebounded.
NEW YORK: The trade deficit in the US probably narrowed in November as fuel imports dropped and exports rebounded, economists said.
The gap shrank to $41.2 billion from October’s $42.2 billion, according to a survey. Another report the same day may show import prices were little changed in December.
Sustained job gains and the drop in oil prices that is helping to reduce the import bill are boosting the buying power of US households, giving the world’s largest economy a lift. In addition, stabilization in global growth, led by a pickup in China, will probably keep propelling sales overseas for American companies such as Ford Motor Co. (F).
“The export side of it just sort of swamps the import side this month,” said Tom Porcelli, chief U.S. economist at RBC Capital Markets LLC in New York. “Exports have been a sector of significant strength in the U.S.” “That’s a story that could remain in place in 2013” given the recent rebound in global manufacturing, Porcelli added.
Manufacturing in China unexpectedly expanded in December at the fastest pace in 19 months, boosting optimism that a recovery in the world’s second-biggest economy is gaining traction, a Dec. 31 report showed.
The country’s economy may have rebounded after a seven-quarter slowdown as the government increased spending on infrastructure and accelerated investment-project approvals.
