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US mood improves, trade gap narrows

US exports fall, but drop in imports is bigger
US exports fall, but drop in imports is bigger

Official figures show that the US trade deficit shrank sharply in October to its lowest level of the year as imports tumbled.

A separate index of consumer sentiment rose to its highest level in six months in early December in the latest sign that the US economy's health is slowly improving.

The Thomson Reuters/University of Michigan preliminary December reading on consumer confidence climbed for a fourth straight month to 67.7 from 64.1 in November.

The Commerce Department said the trade gap fell to a seasonally adjusted $43.5 billion, down from a revised $44.2 billion in September.

Imports, which had stagnated between June and September at around $224 billion a month, dropped by 1% to $222.6 billion. Exports also fell in October, down 0.8% from the previous month to $179.2 billion.

The politically sensitive trade gap with China, Washington's second-largest trade partner, was unchanged at $28.1 billion from September.