Trade gap narrowed in July on record exports

The nation’s trade deficit narrowed in July to its lowest level since January on record exports, a good sign for future economic growth. 

{mosads}The trade gap dropped to a seasonally adjusted $40.5 billion in July, a 0.6 percent drop from $40.8 billion in June, the best showing in six months, the Commerce Department said Thursday.

Exports, bolstered by record auto sales, rose to an all-time high of $198 billion, up 0.9 percent from $196.2 billion in June.

Imports also picked up the pace, rising 0.7 percent to $238.6 billion from $237 billion in June. 

The U.S. economy grew at a 4.2 percent clip in the second quarter, faster than previously estimated.

Meanwhile, the trade deficit with China rose to a monthly record of $30.9 billion, up 2.7 percent from June.