The U.S. trade deficit narrowed in April as exports of services hit a record high and imports fell.
The U.S. Commerce Department on Wednesday said that the U.S. trade gap shrunk to $40.9 billion in April, 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.