US companies stepped up hiring in December; trade deficit hits 11-month low

WASHINGTON (AP) -- U.S. businesses ramped up hiring last month in the latest sign that the nation's economy is expanding despite worries about global growth that have sent financial markets tumbling. Meantime, the U.S. trade deficit fell in November to the lowest level in 11 months as crude oil imports dropped to a two-decade low.<br /> <br /> HIRING<br /> <br /> Payroll processor ADP said Wednesday that companies added 241,000 jobs in December, up from 227,000 in November. That suggests Friday's government report on December job gains will also be healthy.<br /> <br /> The ADP numbers cover only private businesses and sometimes diverge from the government's more comprehensive report, which includes government agencies.<br /> <br /> Economists forecast the government's figures will show that employers added 240,000 jobs in December, according to a survey by financial data provider FactSet. The unemployment rate is expected to remain at 5.8 percent.<br /> <br /> Hiring was solid across most large industries and company sizes. Manufacturers added 26,000 jobs, the second-highest monthly total in 2014 and up from 16,000 in November. Construction firms added 23,000, up from 20,000 the previous month.<br /> <br /> Small companies with fewer than 50 employees gained 106,000 jobs, up from 99,000 in November. Medium-sized firms gained 70,000 jobs and large companies 66,000.<br /> <br /> TRADE DEFICIT<br /> <br /> The U.S. trade deficit fell in November to the lowest level in 11 months as crude oil imports dropped to a two-decade low.<br /> <br /> The trade deficit narrowed to $39 billion in November, down 7.7 percent from a revised October deficit of $42.2 billion, the Commerce Department reported Wednesday. U.S. exports slipped 1 percent to $196.4 billion, with sales of commercial airliners falling.<br /> <br /> Imports dropped even faster, falling 2.2 percent to $235.4 billion. That was primarily a reflection of foreign oil declines. The volume of crude imported in November hit its lowest level since 1994, while the average price dropped to a two-year low.<br /> <br /> The U.S. trade deficit is being helped by falling global oil prices and a boom in U.S. energy production, which has lessened America's reliance on imports.<br /> <br /> The November deficit was the lowest since a trade gap of $37.4 billion in December 2013. Through the first 11 months of 2014, the deficit is running 5.1 percent above the same period in 2013.<br /> <br /> The smaller-than-expected deficit for November caused some economists to boost their growth forecasts for the final three months of the year.

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