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The narrower trade deficit is a sign that goods from manufacturers in the United States are becoming more competitive overseas.
A falling dollar has helped spur American exports and curb imports, contributing to a narrower trade deficit.
Analysts also say the narrower trade gap will spell faster economic growth in the third quarter than previously estimated.
A narrower trade gap lifts growth because it means American companies are earning more from overseas sales while domestic consumers and businesses are spending less on foreign products.
Revisions to September's data showed a narrower trade gap than previously reported and suggested the contribution from trade was probably slightly bigger.
A narrower trade deficit could lead to a slightly higher level for the gross domestic product, said Clark Yingst, the chief market analyst for the investment firm Joseph Gunnar, "but not exactly for the reasons that we'd like".
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Big groups or small, sweeping deals or narrow, trade liberalisation is never easy, alas.
Economists said the narrowing trade surplus reflected Japan's growing appetite to consume.
"The narrowing trade deficit may be enough to keep second-quarter growth in the black," said Joel L. Naroff, president of Naroff Economic Advisors.
UBS Securities said, "For now, the weakening exports, strong imports and narrowing trade surplus should help China resist calls for a faster appreciation" of the renminbi.
There is still time to cobble together a narrow trade agreement to help the poorest nations on earth before the World Trade Organization's ministerial meeting in December.
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