US trade deficit narrows in November

The US trade deficit on goods in November narrowed to $60.5bn from an upward revised $61.9bn the previous month, according to data from the Census Bureau on Tuesday.

Analysts had been expecting a deficit of $60.7bn in November while October's trade deficit had been previously estimated at $58.4bn. Imports fell 1.8% last month while exports dropped 2%.

"Alongside trade prices already reported by the Bureau of Labor Statistics for November, this morning’s data suggest that the real goods deficit narrowed slightly on the month, against our expectations of a modest widening," said Barclays.

"This implies a smaller drag from net trade in Q4 and a modest boost to GDP growth. This effect was partially offset by better-than-expected net exports of capital goods that trimmed our estimate of equipment investment. Overall, our Q4 GDP tracking estimate rose one-tenth, to 1.6%."