Trade gap in U.S. narrows more than forecast as imports fall

The trade deficit in the U.S. narrowed more than forecasted for April as imports declined, indicating flow at ports is returning to normal following a glut of import shipping.

April’s gap shrank by 19.2 percent from $50.6 billion to $40.9 billion – the biggest drop since February 2009.

Purchases of imports declined following the end of a labor dispute at West Coast ports, which caused a March increase of 6.5 percent. Imports declined 3.3 percent in April to $230.8 billion.

Imports will likely remain limited due to a strong U.S. dollar, overseas demand for American-made goods and increased production of domestic petroleum, according to Bloomberg Business.

Read more from Bloomberg Business.[[In-content Ad]]