The US trade deficit narrowed in April as exports of services hit a record high and imports fell.
The US Commerce Department on Wednesday said that the U.S. trade gap shrunk to $40.9 billion, down from March's revised deficit of $50.6 billion. The March deficit was previously reported at $51.4 billion.
The 26.6 percent drop in the April trade deficit was the largest decrease since early 2009.
Analysts polled by Reuters had forecast the trade deficit falling to $44 billion.
Imports fell 3.3 percent to $230.8 billion as West Coast ports, a key entry point for goods to and from Asia, cleared a backlog created by a labor dispute that was settled earlier this year.
Exports increased 1.0 percent to $189.9 billion in April. A stronger US dollar has in recent months made US goods and services less affordable abroad.
Exports of US services swelled to $60.9 billion, the highest ever recorded.
The politically-sensitive trade gap with China was $26.5 billion, down 15.2 percent from $31.2 billion in March.
Exports to China were down 5.8 percent to $9.3 billion, while imports from that country slipped 13 percent to $35.8 billion.
The April petroleum deficit stood at $6.8 billion, the lowest since March 2002.
Imports from South Korea were the highest ever recorded, while imports from Britain reached their highest level since July 2008. Exports to Canada, a key US trading partner, fell, while those to Mexico rose.