WASHINGTON: The US trade deficit fell sharply in June as exports increased to their highest level in 2-1/2 years, a positive development for the economy.The Commerce Department said on Friday the trade gap decreased 5.9 percent to $43.6 billion, the lowest level since October 2016. May's trade deficit was revised slightly down to $46.4 billion from the previously reported $46.5 billion.Economists polled by Reuters had forecast the trade shortfall narrowing to $45.0 billion in June.When adjusted for inflation , the trade deficit fell to $61.0 billion from $62.8 billion in May. Exports to China fell 4.7 percent.Imports of goods and services slipped 0.2 percent to $238.0 billion in June. Imports of cell phones and other household goods fell $0.9 billion, accounting for the bulk of the $0.7 billion decrease in consumer goods imports.Imports of goods from China increased 1.2 percent. The politically sensitive US-China trade deficit increased 3.1 percent to $32.6 billion in June.

Source: Economic Times August 04, 2017 14:00 UTC