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Growing exports shrink trade deficit as global demand stirs

WASHINGTON — The biggest gain in US exports in nine months helped narrow the trade deficit in March, pointing to a revival of global demand that will help the world’s largest economy strengthen.

The gap shrank by 3.6 percent to $40.4 billion from the prior month’s $41.9 billion, Commerce Department figures showed Tuesday in Washington. Sales to foreign customers climbed 2.1 percent on growing demand for aircraft, autos, and fuels.

A slowdown in trade helped depress economic growth in the first quarter, which was already held back by harsh winter weather that trimmed business investment. The March improvement adds to a spate of data showing the world’s largest economy was gaining steam.

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“Exports rebounded after a few weaker months, and that’s good to see,’’ said Paul Edelstein, director of financial economics at IHS Global Insight Inc. in Lexington, Mass.

The trade gap with China, the world’s second-biggest economy, narrowed 2.2 percent to $20.4 billion from $20.9 billion. China is set to overtake the United States as the biggest economy in terms of purchasing power as early as this year, the International Comparison Program, which involves the World Bank and United Nations, said April 29.

Bloomberg News