The U.S. trade deficit narrowed a third straight month during November, reaching its lowest point since July 2005.

The U.S. deficit in international trade of goods and services decreased by 1% to US$58.23 billion from US$58.80 billion in October, the U.S. Commerce Department said today. October’s shortfall was previously estimated at US$58.87 billion.

The November trade deficit was lower than Wall Street expected. Economists had predicted a deficit of US$60 billion. It was the lowest trade gap since US$58.08 billion in July 2005.

Imports in November advanced by 0.3%, after dropping two straight months as the U.S. economy weakened. Gross domestic product increased at a rate of 2.0% July through September, after rising 2.6% in the second quarter and 5.6% in the first quarter.

U.S. imports rose to US$183 billion from US$182.47 billion in October even though oil imports fell.

U.S. exports increased by 0.9% to US$124.76 billion in November from US$123.67 billion in October.

The U.S. trade deficit with China decreased to US$22.92 billion from US$24.37 billion in October. The deficit with Japan shrank to US$7.90 billion from US$8.25 billion. The trade gap with Canada fell to US$5.42 billion from US$5.46 billion.

The trade gap with the euro area rose to US$7.40 billion from US$6.99 billion. The monthly shortfall with Mexico increased to US$5.44 billion from US$5.18 billion.