June U.S. trade deficit sinks 22% to $34.2 billion

June U.S. trade deficit sinks 22% to $34.2 billion

The U.S. trade deficit shrank in June by 22.4% to $34.2 billion to mark the smallest gap since fall 2009, a decline likely to give a boost to the nation's 1.7% growth figure for the second quarter when it's revised at the end of the month. A smaller deficit is a positive for gross domestic product. Economists surveyed by MarketWatch had forecast the deficit to fall to $43 billion. What's more, the trade gap for May was also revised a touch lower to $44.1 billion from $45.0 billion, the Commerce Department said Tuesday. The sharp narrowing of the trade gap reflected higher exports and lower imports. Imports decreased by 2.5% in June to a seasonally adjusted $225.4 billion, while exports rose 2.2% to $191.2 billion. The U.S. exported more oil, chemicals, jetliners and jewelry and imported less oil, cell phones and industrial supplies. The trade deficit with Europe declined to $6.74 billion in June from $12.36 billion in May on an unadjusted basis, mainly because the U.S. imported fewer goods and services from that region