By Lucia Mutikani<\/p>\n
WASHINGTON, June 9 (Reuters) – The U.S. trade deficit narrowed in April as exports jumped to a record high, a trend that if sustained, puts trade on course to contribute to economic growth this quarter.<\/p>\n
The smaller \u200ctrade gap, which was reported by the Commerce Department on Tuesday, partly reflected higher energy prices because of the \u200cU.S.-backed war with Iran, which has disrupted shipping in the Strait of Hormuz. Petroleum exports hit a record high in April.<\/p>\n
“The good news is that the trade picture \u200bis moving into better balance at the start of the second quarter as tariffs keep the growth of imports down relative to surprising strength seen in exports, but the bad news is the export growth looks uncertain, as much of it appears to be the result of higher energy prices from the Iran conflict,” said Christopher Rupkey, chief economist at FWDBONDS.<\/p>\n
The trade gap contracted 1.2% to $55.9 billion, the Commerce \u200cDepartment’s Bureau of Economic Analysis and Census Bureau \u2060said. Data for March were revised lower to show the deficit at $56.6 billion instead of the previously reported $60.3 billion.<\/p>\n
Economists polled by Reuters forecast the trade deficit would shrink to $56.1 billion in April.<\/p>\n
Exports increased 2.6% to $327.1 \u2060billion, an all-time high. Goods exports surged 4.1% to a record $221.3 billion. Exports of capital goods increased $4.0 billion, boosted by computers and civilian aircraft.<\/p>\n
Exports of industrial supplies and materials, which include petroleum, also set an all-time high. Petroleum exports were the highest on record, boosted by higher volumes \u200band \u200boil prices amid the Middle East conflict. The U.S. is a net \u200boil exporter. Consumer goods exports increased $1.7 billion.<\/p>\n