A report released by the Commerce Department on Wednesday showed the U.S. trade narrowed significantly in the month of July.
The Commerce Department said the trade deficit shrank to $70.6 billion in July from a revised $80.9 billion in June.
Economists had expected the trade deficit to narrow to $70.3 billion from the $79.6 billion originally reported for the previous month.
The trade deficit for July represents the smallest deficit since the $68.2 billion reported for last October.
The narrower deficit came as the value of imports tumbled by 2.9 percent to $329.9 billion, while the value of exports inched up by 0.2 percent to $259.3 billion.
