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First Posted: 8/6/2013

Trade deficit

at 3½-year low

The U.S. trade deficit narrowed sharply in June to its lowest level in more than 3½ years. Exports rose to all-time high and imports declined, signs that economic growth could be stronger than previously thought.

The Commerce Department said Tuesday the June deficit fell 22.4 percent to $34.2 billion. That’s the lowest since October 2009 and down from May’s imbalance of $44.1 billion, which was revised lower.

Exports rose 2.2 percent to $191.2 billion in June. U.S. companies shipped more aircraft engines, telecommunications equipment, heavy machinery and farm goods.

Imports dropped 2.5 percent to $225.4 billion. Oil imports declined to the lowest level in more than two years.

A smaller trade deficit lifts growth because it means consumers and businesses are spending less on foreign goods than companies are taking in from overseas sales. The steep decline in the June deficit could lead the government to revise its growth estimate for the April-June quarter a little higher.

US home prices

continue surge

U.S. home prices surged 11.9 percent in June from a year earlier, reflecting stronger demand amid a tight supply of homes for sale.

CoreLogic, a real estate data provider, said Tuesday that home prices climbed on an annual basis in 48 states. They fell only in Mississippi and Delaware. And all but one of the 100 largest cities reported price gains.

Nevada led all states with an annual gain of 26.5 percent. That was followed by California (21.4 percent), Wyoming (16.7 percent), Arizona (16.2 percent) and Georgia (14.3 percent).

On a monthly basis, U.S. home prices rose 1.9 percent in June from May, the 16th consecutive month-over-month increase.

All told, U.S. home values increased 10 percent through the first six months of the year, the firm said.

Oil and gas deal

sealed in Somalia

Somalia’s government has signed an oil and gas exploration deal with a newly formed British company, the first such agreement by a central government in Somalia after decades of conflict.

The deal with Soma Oil and Gas allows the company to conduct seismic surveys in Somalia’s territorial waters and in limited onshore regions.

The company’s chief executive, Robert Sheppard, said Tuesday that Somalia remains significantly underexplored in the oil and gas sector despite recent discoveries across East Africa. Uganda, Kenya and Tanzania are among nations with recent discoveries.

Somalia’s Mogadishu-based government said it expects the deal will attract new development “in an area of immense economic potential” for the nation.