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Associated Press
The trade deficit narrowed in April to $50.1 billion, but only because a big drop in imports offset a decline in U.S. exports.

Trade gap narrows in April, but analysts unimpressed

– The U.S. trade deficit shrank in April, but only because a big drop in imports offset the first decline in U.S. exports in five months.

The Commerce Department said Friday that the trade deficit narrowed 4.9 percent in April to $50.1 billion.

U.S. exports, which had hit a record the previous month, fell 0.8 percent to $182.9 billion. Sales of everything from commercial jetliners to industrial machinery declined.

Imports, which also set a record in March, dropped an even faster 1.7 percent to $233 billion.

The trade gap remains wide and could weigh on growth in the April-June quarter. A wider trade gap slows growth because it means the United States is spending more on foreign-made products than it is taking in from sales of U.S.-made goods.

The slip in exports is especially troublesome because it shows the weaker global economy is dampening demand for American-made goods. Export sales declined to Europe, China and Brazil.

“With growth in Asia cooling, Europe in recession and the U.S. dollar strengthening, exports are likely in for another rough ride over the next year,” said James Marple, senior economist at TD Economics.

U.S. exports to the 27-nation European Union dropped 11.1 percent in April. Europe accounts for almost one-fifth of U.S. exports.

Growth has also slowed in emerging market countries. Exports to Brazil fell 8.2 percent in April.

The U.S. deficit with China increased to $24.6 billion in April. This year’s deficit is running 11.9 percent ahead of last year, when the imbalance hit an all-time high.

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