U.S. trade deficit in April shrinks as imports fall

U.S. trade gap narrowed in April as imports fall, the Commerce Department said on Wednesday.

The country's trade deficit shrank by 19.2 percent from the previous month to 40.9 billion U.S. dollars in April. In the month, exports increased 1.9 billion dollars or one percent from March to 189.9 billion dollars, while imports fell 7.8 billion dollars or 3. 3 percent to 230.8 billion dollars, after rising 6.5 percent in March.

The positive exports data might ease concerns about weak exports undermining the economy in the second quarter.

The gross domestic product (GDP) shrank at an annual rate of 0. 7 percent in the first quarter, marking the third quarterly contraction after the financial crisis ended in mid-2009. As a result of a strong dollar, net exports contributed a negative 1.9 percentage points to the economic growth in the first quarter.

However, some analysts and Federal Reserve officials expected the strong dollar and weak external demand might continue to hurt the economy in the near term.

Lael Brainard, governor of the Fed board, warned on Tuesday that the strong dollar could continue to impose downward pressure on exports and the prices of imported goods. Endite