Record exports sharply narrow U.S. trade deficit
The U.S. trade deficit narrowed sharply in October as exports soared to a record high, potentially setting up trade to contribute to economic growth this quarter for the first time in more than a year. The report from the Commerce Department on Tuesday, which also showed imports rising to an all-time high, added to a tightening labor market, strong consumer spending as well as services and manufacturing activity that have suggested an acceleration in growth was underway as the year winds down. “The trade deficit is narrowing big time and pouring even more fuel into the economy’s tank which guarantees stronger growth as 2021 comes to an end,” said Christopher Rupkey, chief economist at FWDBONDS in New York.
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