US April trade deficit narrows to $58.5 billion

Mumbai: US trade deficit fell more than expected in April to $58.5 billion, as a weakening dollar depressed import demand and helped push exports, the US commerce department said in a report.

The trade gap in April was down 6.2 per cent from a downwardly revised estimate for March. The April deficit fell below the analysts'' estimates of a $60-$66.9 billion range.

The commerce department also revised its estimate of the 2006 trade deficit to $758.5 billion, from a previously estimated $765.3 billion.

US exports rose by a narrow 0.2 per cent to a record $129.5 billion, which is partly reflected in a $3 billion upward revision in March exports to $129.2 billion.

Exports of both goods and services set records, with exports of feeds and beverages, industrial supplies and materials and consumer goods hitting all-time highs.

A 1.9 per cent drop in overall imports, despite a jump in the average price of imported oil to $57.28 per barrel, also helped rein in the trade deficit.

Imports of consumer goods dropped $1.5 billion in April while those of autos and auto parts fell by $1 billion. Other categories, such as capital goods and foods, feeds and beverages, also showed a decline.

Imports from China increased 6.6 per cent in April to $24.2 billion, while US exports to that country fell 11.5 per cent to $4.8 billion. Trade gap with China swelled 12.3 per cent to $19.4 billion.