Trade Deficit in U.S. Plunges on Record Petroleum Exports
By Shobhana Chandra - Feb 8, 2013 8:35 AM ET
The trade deficit in the U.S. narrowed more than forecast in December, led by record exports of petroleum that gave the world’s largest economy a boost at the end of 2012.
The gap shrank 20.7 percent to $38.5 billion, lower than any estimate in a Bloomberg survey of 73 economists and the least since January 2010, Commerce Department figures showed today in Washington. The jump in fuel sales to overseas buyers, combined with purchases of the fewest barrels of imported crude in almost 16 years, led to the smallest petroleum deficit since August 2009.
The figures probably mean the economy managed to eke out a gain in the fourth quarter of last year, revised data may show later this month, even as military spending dropped by the most since the Vietnam War era. Record exports to South and Central America and to Newly Industrialized Countries including South Korea and Singapore indicate American companies such as Caterpillar Inc. will benefit from improving global growth.
“There’s been some encouraging news out of Asia and a number of Asian economies seem to be in an upswing,” Ryan Wang, an economist at HSBC Securities USA Inc. in New York and the third-best trade forecaster over the past two years, according to data compiled by Bloomberg, said before the report. “That should help U.S. exports grow modestly this year.”
Stock-index futures remained little changed after the figures as investors watched corporate earnings. The Standard & Poor’s 500 Index maturing in March fell less than 0.1 percent to 1,504.7 at 8:31 a.m. in New York.
more:
http://www.bloomberg.com/news/2013-02-08/trade-deficit-in-u-s-plunges-on-record-petroleum-exports.html
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