Trade gap shrinks more than forecast as imports drop

Washington

THE US trade deficit shrank more than forecast in July as imports of mobile phones and pharmaceuticals dropped, while exports were little changed.

The gap decreased 7.4 per cent to US$41.9 billion, the smallest since February, from a revised US$45.2 billion in June that was wider than previously estimated, the Commerce Department reported on Thursday in Washington. The median forecast in a Bloomberg survey of 71 economists called for a deficit of US$42.2 billion.

Exports are projected to slump in coming months as a strong dollar and slowing economies of trading partners from Canada to China and Brazil…