US trade deficit at two-year high in April

WASHINGTON (AP) _ The U.S. trade deficit jumped to a two-year high in April, as
sales of exports declined and imports surged to a record high.

The Commerce Department says the deficit rose to $47.2 billion in April, up 6.9
percent from an upwardly revised March deficit of $44.2 billion.

Exports dropped for the fourth month out of the past five, falling 0.2 percent
to $195.4 billion. Meanwhile, imports climbed 1.2 percent to an all-time high of
$240.6 billion, reflecting record levels for shipments of foreign-made cars,
food, computers and other goods.

A wider trade deficit can act as a drag on growth because it means U.S.
companies are earning less from their overseas markets. But the wider deficit
can also indicate rising U.S. demand.

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