The numbers: The U.S. international trade deficit narrowed 8.2% to $68.9 billion in April from a record revised $75 billion in the prior month, the Commerce Department said Tuesday.
Economists polled by The Wall Street Journal had forecast the deficit to narrow to $69 billion.
What happened: Exports expanded 1.1% to $205 billion in April, while imports fell 1.4% to $273.9 billion.
The drop in imports was led by petroleum and consumer goods.
Exports increased led by capital goods and Boeing
aircraft. Auto exports declined.
Big picture: Analysts expect the trade deficit to widen further this year given stronger U.S. economic growth compared with trading partners. The report suggests trade will have a positive contribution to second-quarter GDP.
What are they saying? “This report highlights the potential for that widening trend to slow modestly as consumers shift from goods to services amid more reopenings,” said economists at Contingent Macro.
Market reaction: Stocks