US trade deficit falls sharply in April

America’s shortfall in trading with the rest of the world dropped sharply in April.

The US trade deficit narrowed at its steepest rate since February 2009 to reach -$40.9bn, down from the prior month’s reading of -$44bn, according to the Department of Commerce.

March’s tally was revised higher to -$51.4bn in comparison with an initial estimate of -$50.6bn.

"Net exports would make a positive contribution to overall GDP growth which, along with the massive spike in motor vehicle sales in May, is why we still think that GDP growth will be between 2.5% to 3.0%," analysts at Capital Economics said in a note.