The US trade deficit unexpectedly narrowed in November to its smallest since 2016 as it showed a third consecutive monthly contraction, but any boost to growth could be countered by a slowing pace of inventory accumulation.

The advance trade deficit in goods shrank to $63.2bn last month from $66.8bn in October, the Commerce Department said on Monday. That marked the narrowest it has been since October 2016, according to Bloomberg data.

The deficit contrasted with economists’ expectations that it would widen to $68.75bn, according to a Reuters survey. Exports from the US rose 0.7 per cent, driven by a 3.4 per cent increase in automotive vehicles and products and a 2.6 per cent rise in consumer goods. Meanwhile, imports declined 1.3 per cent in a broad decline across foods, industrial supplies and capital goods.