U.S. Deficit Narrows

Economy may be stronger than many initially forecast

WASHINGTON—The U.S. trade gap narrowed in December as petroleum imports fell to the lowest level in more than a decade, implying a stronger economy than originally thought in the fourth quarter.

The U.S. deficit in international trade of goods and services decreased nearly 21% to $38.54 billion from a revised $48.61 billion the month before, the Commerce Department said Friday. That was the biggest deficit contraction in nearly four years.