The United States economy most likely expanded slightly in the fourth quarter, instead of contracting, according to trade data released Friday that suggested a surprise drop in gross domestic product reported last week may have been overstated.

The country’s trade deficit narrowed to $38.5 billion in December, its lowest reading in nearly three years, Commerce Department data showed. The decrease was driven by a drop in oil imports and a surge in exports. The overall trade gap was far smaller than analysts polled by Reuters had expected.  Read more