New figures released by the Commerce Department on Thursday showed a surprise contraction in the U.S. trade deficit during October, defying expectations for a wider shortfall.
According to the report, the trade gap narrowed to $29.4 billion in October, down from a downwardly revised $48.1 billion in September. Economists had anticipated the deficit would widen to $58.9 billion, compared with the $52.8 billion initially reported for the prior month.
The unexpected improvement was driven by a steep decline in imports, which fell 3.2%, alongside a strong increase in exports, which climbed 2.6% over the month.