The U.S. trade deficit narrowed by 14 percent to 42.8 billion dollars in July, the lowest level in 17 months, the Commerce Department reported Thursday.
The July deficit was the smallest imbalance since August 2008, and was much lower than economists had expected.
In July, exports rose 1.8 percent to 153.3 billion dollars, while imports dropped 2.1 percent to 196.1 billion dollars.
Economists say that the increase in exports and decline in imports reflects that the U.S. economic recovery from the most serious recession since the Great Depression remained slow. The lower trade deficit should give a boost to overall economic growth.
Experts expect that the trade deficit would rise this year but hope that expanding exports would continue to boost the recovery of the American manufacturing sector./.