Washington, August 04 (QNA) - The US trade deficit narrowed 5.6% month-on-month in June to $73.3 billion, driven by a decline in imports despite continued strength in domestic demand, according to data released by the U.S. Department of Commerce.

Data from the Bureau of Economic Analysis and the US Census Bureau showed the deficit came in close to analysts' expectations of $73.0 billion. Imports fell 1.8% to $388.0 billion in June, while goods imports declined 2.5% to $309.0 billion. Exports, meanwhile, slipped 0.9% to $314.7 billion, while goods exports fell 1.9% to $206.9 billion.

Despite the narrower trade deficit, estimates suggest the trend may not persist given the strength of domestic demand, which continues to be supported by higher consumer and business spending, particularly on artificial intelligence-related infrastructure investments.

Last week, the US government reported that the trade deficit widened during the second quarter of this year, subtracting a full percentage point from gross domestic product growth. The US economy expanded at an annual rate of 1.5% in the second quarter, while domestic demand continued to grow at its fastest pace since the first quarter of 2023. (QNA)