August 11, 2006	Friday	Rajab 15, 1427

WASHINGTON, Aug 10: The US trade deficit narrowed to touch $64.8 billion in June as the high level of oil imports offset a record growth in exports, the Commerce Department said on Thursday.

The deficit narrowed a slim 0.3 per cent compared to a revised $65 billion in May, but was not trimmed as much as Wall Street had hoped. Most Wall Street economists had forecast that the deficit would narrow to $64.5 billion.

The May figure was revised up sharply from an initial estimate of $63.8 billion.

Exports rose 2 per cent in June to a record $120.7 billion while imports increased 1.2 per cent to a record $185.5. Some of the export growth has been boosted by a weak US dollar.

Exports grew as the US shipped more capital goods such as computer accessories and civilian aircraft engines overseas, while imports ticked up as the American consumer's appetite for foreign cars and consumer goods showed no sign of abating.

Despite the slight narrowing of the deficit in June, the deficit since the start of the year is $383.9 billion, way ahead of the pace at this time last year of $340.2 billion.—AFP