US trade deficit falls sharply in June

The US trade deficit shrank unexpectedly by over 4 percent in June, as a weak dollar boosted exports to an all-time high, according to official figures released Tuesday. ┬á US Commerce Department statistics show the June trade deficit at $56.8 billion, down from $59.2 billion in May. Exports of goods and services rose 4 percent to a record $164.4 billion, offsetting a 1.8 percent rise in imports. ┬á┬á Although the dollar has recently gained ground against the euro and other currencies, its earlier decline helped export orders by making US goods cheaper abroad. ┬á┬á US Trade Representative Susan Schwab said the strong export growth showed that US companies were internationally competitive. ┬á┬á The rise in imports was brought about by a 14.6 percent surge in petroleum imports, but leaving oil aside, imports declined in June as the credit crunch and housing slump hit consumer demand.┬á┬á Imports fell in nearly all categories except commodities, and exports peaked in industrial supplies and materials, food and beverage products and consumer goods.┬á┬á The overall trade deficit in June was at its lowest since March this year, and the deficit in non-petroleum products was the smallest since February 2003.  ┬á┬á┬á┬á*┬á┬á┬á┬á┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á┬á┬á┬á *┬á