US trade deficit drops, service sector grows at slower pace

The U.S. trade deficit dropped in October driven by exports which hit a record high, official data showed here Wednesday. The Department of Commerce indicated that total October exports of USD 192. 7 billion and imports of USD 233.3 billion resulted in a goods and services deficit of USD 40.6 billion, down from USD 43.0 billion in September. October exports were USD 3.4 billion more than September exports of USD 89. 3 billion, while October imports were USD 1.0 billion more than September imports of USD 232.3 billion. In October, the goods deficit decreased USD 2.2 billion from September to USD 60.2 billion and the services surplus increased USD 0.1 billion from September to USD 19.6 billion. Exports of goods increased USD 3.0 billion to USD 135.3 billion and imports of goods increased USD 0.8 billion to USD 195.5 billion. Also, exports of services increased USD 0.4 billion to USD 57.4 billion and imports of services increased USD 0.3 billion to USD 37.8 billion. The goods and services deficit decreased USD 2.0 billion from October 2012 to October 2013, whereas exports were up USD 10.0 billion, or 5.5 percent, and imports were up USD 8.0 billion, or 3.6 percent. Meanwhile, the Institute for Supply Management (ISM) indicated in a report that the Non-Manufacturing Index (NMI) fell to 53.9 percent in November, 1.5 percentage points lower than October's reading of 55.4 percent, indicating a continued growth at a slower rate in the non-manufacturing sector . The Non-Manufacturing Business Activity Index decreased to 55.5 percent, which is 4.2 percentage points lower than the 59.7 percent reported in October while the New Orders Index decreased slightly by 0.4 percentage point to 56.4 percent. The Employment Index decreased 3.7 percentage points to 52.5 percent, indicating growth in employment for the 16th consecutive month, but at a slower rate. The Prices Index decreased 3.9 percentage points to 52.2 percent, indicating prices increased at a slower rate in November when compared to October. According to the NMI, 11 non-manufacturing industries reported growth in November