The U.S. trade deficit narrowed significantly in October, falling 11.9% to $73.8 billion, according to data released Thursday by the Commerce Department.
This was a much smaller deficit than expected, as economists had expected a deficit of $75.4 billion.
The trade gap for September has been revised downward to $83.7 billion from the original estimate of $84.4 billion.
Imports fell noticeably in October, falling by 4% to $339.6 billion, following a record September. Declines in consumer goods and capital goods contributed to the decline, suggesting that demand for certain categories of foreign-made products may cool. It is also likely that businesses had stocked up on goods ahead of the port strike, which was much shorter in duration than expected.
Exports also retreated, falling 1.6% to $265.7 billion after setting a record last month. There was a noticeable drop in shipments of automobiles and industrial goods, putting pressure on the overall economy.
