The U.S. trade deficit narrowed in October to its lowest point of the year after Americans bought fewer foreign cars and imported less oil. The shrinking trade gap boosted growth over the summer and may do so again in the final three months of the year. The Commerce Department says the trade deficit shrank 1.6% to $43.5 billion and marked its fourth straight monthly decline. Overall imports fell 1% to $222.6 billion, which largely reflected a 5% decline in oil imports. The average price of imported oil fell for the fifth straight month to the lowest level since March. Oil prices rose last winter because of turmoil in the Middle East and North Africa. Exports, however, slipped 0.8% to $179.2 billion, the first drop after three months of gains. Shipments of industrial supplies, such as natural gas, copper and chemicals, fell. Exports of autos and agricultural goods also dropped. A lower trade deficit is the latest sign that the economy is rebounding after nearly stalling in the spring. It can boost economic growth because it typically means foreign nations are buying more American goods. That can lead to more jobs and higher consumer spending, which fuels 70% of economic activity. But economists expect the trend toward a narrower deficit could reverse in the coming months. Oil prices are increasing, and Europe is likely to import fewer U.S. goods as its economy weakens. At the same time, U.S. businesses are stocking up on foreign goods as consumer demand improves. Read the full story from The Associated Press here.
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