U.S. Trade Deficit Narrows Sharply Amid Import Drop

The U.S. trade deficit experienced a notable reduction in April, driven primarily by a significant drop in imports, marking the sharpest decline on record. This contraction in the trade gap, which fell by 55.5% to $61.6 billion, could offer a potential lift to the country's economic growth this quarter, as per reports from the Commerce Department's Bureau of Economic Analysis.

Economists anticipated the trade deficit to narrow to $70 billion, but the actual figures surpassed expectations. April saw a record 46.2% decrease in the goods trade deficit, bringing it to $87.4 billion. This adjustment could positively impact the GDP, depending on inventory states, with reduced imports contributing heavily to the shift.

The import dip, at 16.3% to $351 billion, was largely due to decreased consumer goods from Ireland and a fall in cellphones and household goods imports, alongside a $23.3 billion drop in industrial supplies. Meanwhile, U.S. exports hit a record high, bolstered by gains in industrial supplies and materials.

(With inputs from agencies.)