US trade deficit narrows in April as exports hit record highs

The US trade picture got a little less grim in April. The overall goods-and-services deficit fell to $55.9 billion, down from $56.6 billion in March, as American exports climbed to a record $327.1 billion.

The goods-only deficit told an even sharper story, narrowing 3.4% to $82.4 billion from a revised $85.3 billion the prior month.

Record exports did the heavy lifting

Goods exports jumped 4.0% to hit $219.7 billion, a new all-time high. Capital goods exports climbed 7.5%, consumer goods rose 7.8%, and industrial supplies ticked up 2.1%.

On the import side, the increase was more modest at 1.9%, bringing goods imports to $302.1 billion. Capital goods imports grew 5.6%, but that was partially offset by declines in vehicles, consumer goods, and industrial supplies.