Trade deficit narrows to $42.8 billion in July

WASHINGTON (AP) — The trade deficit narrowed significantly in July as exports climbed to the highest level in nearly two years, reflecting big gains in sales of U.S.-made airplanes and other manufactured goods while imports declined.

The July deficit fell 14 percent to $42.8 billion, the Commerce Department reported Thursday. That was much lower than economists had forecast. The lower trade deficit should give a boost to overall economic growth.

Exports rose 1.8 percent to $153.3 billion, the best showing since August 2008, as sales of jetliners, industrial machinery, computers and telecommunications equipment all posted large gains. Imports, which had been surging, dropped …