Commerce Department Sees Economy Expanding, Trade Gap Narrowing in '87
WASHINGTON -- The Commerce Department, in predicting a fifth consecutive year of economic expansion in 1987, expects a significant narrowing of the nation's trade deficit.</br></br>In its annual Industrial Outlook, a detailed analysis of 250 goods-producing industries and more than 130 service-sector industries, the department forecasts that about 70% of U.S. manufacturing industries will record increased shipments.</br></br>At a news conference Wednesday, Deputy Commerce Secretary Clarence Brown said the department's most optimistic forecasts estimate that the merchandise trade gap could narrow by as much as $40 billion this year.</br></br>The deficit in 1986 is believed to have swelled to as much as $170 billion, and many private economists anticipate less improvement in 1987 than Mr. Brown suggested. In a separate report released yesterday, the department said the nation's merchandise trade deficit expanded to a record $19.22 billion in November.</br></br>Mr. Brown said manufactured exports are expected to grow faster than imports for the first time since 1980. The improving trade balance, he said, is due to the dollar's decline against major foreign currencies, U.S. efforts to encourage more-balanced growth and trade-liberalization abroad, and strict enforcement of U.S. trade laws.