The US trade deficit narrowed more than expected in December as record exports remained a bright spot of a weakening economy, data showed today.
The December trade gap narrowed 6.9 per cent from November to $58.8 billion, the biggest month-to-month drop in more than a year. Wall Street analysts had forecast the December deficit to be $61.5 billion.
A strong global economy and a weakening dollar have propelled US exports to new highs, which helped the world's largest economy to narrow its annual trade deficit last year for the first time in six years.
The number of US workers filing new claims for jobless benefits fell 9,000 last week, although the four-week moving average of new claims, which is considered a more reliable gauge, rose to its highest in more than two years.
Financial markets took the data as a relatively positive sign for waning US growth, an increasingly rare development in recent weeks. US stock index futures enjoyed a brief gain after the reports before opening lower. The dollar rose.
US government bonds which generally perform better during times of economic weakness, headed lower in price.
The trade deficit totalled $711.6 billion for 2007, down 6.2 per cent from the record set in 2006 and the largest annual percentage drop since 1991.
US exports of goods and services set a record in December, pushing the total for the year to a record $1.62 trillion.