U.S. trade gap narrows

The trade deficit unexpectedly fell 4.1% in June as exports hit an all-time high, offsetting an increase on oil imports, according to the Department of Commerce. The June trade imbalance fell to $56.8 billion, down from a revised $59.2 billion in May. Wall Street economists had been expecting a deficit of $61.5 billion. Exports of goods and services rose to a record $164.4 billion, up from $158 billion in May, due to the declines in the dollar earlier in the year, which made U.S. goods more affordable overseas. Imports increased to a record $221.2 billion, up 1.8% from $217.2 billion in May. A catalyst for the increase was a 14.6% increase in the price of petroleum imports, which rose to an all-time high of $44.5 billion. The trade deficit with China inched up to $21.4 billion, from $21 billion in May, while the deficit with the European Union rose to $8.2 billion, from $7.9 billion in May.