A strong increase in exports combined with a drop in imports combined to shrink the U.S. trade deficit much more than expected, according to figures released Thursday by the Commerce Department.
Commerce Department figures project a total level of U.S. exports of $185 billion for June with imports of $227.9 billion leading to a deficit of $42.9 billion.
The deficit marks a 10.7 percent drop from the revised May level of $48 billion, which was itself revised down from the $48.7 billion initially reported.
While most economists had expected the deficit to decline, most had predicted a far smaller drop to $47.5 billion.
June exports, up $1.7 billion or 0.9 percent, set a new record in raw dollar terms, eclipsing the previous record set earlier this year, according to Commerce Department figures.
Also contributing to the drop in the deficit was a $3.5 billion, or 1.5 percent, decline in imports for June, down from the may level of $231.4 billion.
by RTT Staff Writer
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