Trade deficit shrinks in April on drop in exports

The trade deficit narrowed in April as record-level imports outpaced the drop in exports. 

The gap shrank to $50.1 billion, down 4.9 percent, from a revised wider gap of $52.6 billion in March, the Commerce Department reported on Friday. 

Exports and imports each hit a record in March but declined in April. 

Exports were down 0.8 percent to $182.9 billion, $1.5 billion less than March, and the first drop since November. 

Meanwhile, imports fell by 1.7 percent to $233 billion, down $4.1 billion, on decreases in capital goods, industrial supplies and materials, consumer goods and automotive vehicles, parts and engines.

The decline in exports could reflect the struggling global economy, including Europe, which is facing tremendous financial challenges that continue to weigh on the global economy. 

The initial March estimate was $51.8 billion, revised upward to $52.6 billion, creating a drag on the nation's growth, which slowed to 1.9 percent in the first quarter. 

Economists are estimating growth to range between 2 and 2.5 percent for the second quarter and an average around the level for the rest of the year. 

The deficit with China expanded again to $24.6 billion, up from $21.7 billion in March. 

Last year, the United States had the largest-ever gap with any single country, at $295.5 billion, and this year's figure could exceed that.