WASHINGTON, Aug 14 - The U.S. trade deficit narrowed sharply in June, as improving economic growth overseas propelled exports to their largest monthly increase in three years and imports were unchanged, the government said on Thursday. The smaller-than-expected trade gap totaled $39.5 billion, down from a revised estimate of $41.5 billion in May. Analysts surveyed before the report had expected the monthly trade deficit to narrow only marginally to $41.6 billion, from the Commerce Department's earlier estimate of $41.8 billion in May.
U.S. exports of goods and services increased 2.4 percent to $84.6 billion in June, the largest month-to-month rise since June 2000. Exports were the highest since June 2001. Capital good exports showed the biggest increase, led by civilian aircraft and computer accessories. Services exports also jumped, setting a record at $25.6 billion. Overall imports were flat at $124.2 billion, as a sharp drop in consumer products was offset by smaller increases for autos and auto parts, industrial supplies and other goods. Meanwhile, imports from China hit their highest level in eight months at $12.1 billion. China accounts for about one-quarter of the overall U.S. trade deficit and figures for the first six months of the year are on track to surpass last year's record of $103 billion. U.S. manufacturers complain that China has gained an unfair trade advantage from pegging its currency to the value of the U.S. dollar. U.S. Treasury Secretary John Snow has said he would raise those concerns when he visits Beijing next month.//