US trade deficit shrinks in November as imports decline

Government data showed on Tuesday that the US trade deficit unexpectedly narrowed in November as imports declined

The Statistics Office of the Ministry of Commerce said that the trade deficit shrank by 2 percent to $63.2 billion. Data for October were revised slightly, showing that the trade deficit widened to $64.5 billion instead of $64.3 billion as reported in the previous reading.

The trade figures were neutral in terms of the economy’s growth rate of 4.9% in the third quarter. Growth in the previous quarter was curbed by a lower accumulation of inventory, with companies expecting a slowdown in demand this year after the Federal Reserve raised interest rates by 525 basis points since March 2022.

Growth estimates for the fourth quarter currently stand at 2.5% on an annual basis.