Trade Deficit Shrinks Most in 6 Months

- The Trade Deficit for April shrank to -$58.5 billion versus estimates of -$63.5 billion and a downwardly revised -$62.4 billion in March.

BOTTOM LINE: The US trade deficit narrowed more than forecast in April as exports rose to a record and imports dropped, Bloomberg reported. The 6.2% decline in the trade gap was the most in six months. In April, exports rose .2% to a record $129.5 billion, as sales of foods, plastics and consumer goods such as jewelry rose. I continue to believe the trade deficit will only improve mildly over the intermediate-term as a decline in commodity prices more than offsets stronger relative US growth.