U.S. Trade Deficit Narrows in June as Exports Rebound

The U.S. trade deficit in goods narrowed by 2.5% to $96.8 billion in June due to a rebound in exports, though it remained a drag on economic growth in the second quarter. The Commerce Department will publish GDP estimates, with economists predicting a 2.0% growth rate.

The U.S. trade deficit in goods narrowed by 2.5% to $96.8 billion in June, driven by a rebound in exports, the Commerce Department's Census Bureau reported on Wednesday. Despite this improvement, trade likely continued to hinder economic growth in the second quarter.

The government is set to release its advance estimate of second-quarter GDP growth on Thursday. According to a Reuters survey of economists, GDP likely increased at a 2.0% annualized rate last quarter, compared to the previous quarter's 1.4% growth rate.

Trade previously subtracted from GDP growth in the first quarter. The upcoming data will provide further insights into the overall economic trend. (Reporting By Lucia Mutikani; Editing by Andrew Heavens)