WASHINGTON: The US trade deficit fell in July to the lowest level in five months as exports posted a small gain while imports declined, reflecting a big drop in shipments of

consumer goods such as cell phones.

The deficit narrowed to $41.9 billion in July, a 7.4 per cent decline from a June imbalance of $45.2 billion, the Commerce Department reported on Thursday.

Exports were up a small 0.4 per cent to $188.5 billion, helped by stronger sales of US-made autos and machinery, while imports declined 1.1 per cent to $230.4 billion.

So far this year, the deficit is running 3.6 per cent above last year’s level, reflecting weaker export sales.