The US trade deficit shrank sharply in June to $56.8 billion from May, as the dollar's weakness offset record-high oil prices
The June trade gap was much narrower than analysts' consensus forecast of $61.9 billion and hit its lowest level since March, according to figures from the Commerce Department.
Exports rose by 4% to $164.4 billion and imports increased by 1.8% to $221.2 billion.
Oil imports accounted for a significant portion of the rise in overall imports. At a record of $117.13 a barrel on average during the month, the oil deficit hit a new high of $36.4 billion. By contrast, the trade deficit in non-petroleum products was the smallest since February 2003.
The politically sensitive trade gap with China rose to a seasonally adjusted $21.4 billion. Benefiting from a weak dollar, the US posted record exports of $8.2 billion to the EU in June.
The dollar's subsequent strengthening since June and the slowing global economy were expected to affect July's exports.
