By Greg Robb
WASHINGTON (MarketWatch) -- The U.S. trade deficit narrowed by 10.7 % in June to $42.9 billion, the Commerce Department said Thursday. This is the smallest trade gap since December 2010. The trade deficit was below the consensus forecast of Wall Street economists of a deficit of $47.8 billion. The smaller deficit should boost second quarter gross domestic product from the initial estimate of a 1.5% annual growth rate. Exports rose slightly in June with imports declined. The U.S. trade deficit with China widened to $27.4 billion in June compared with $26.6 billion in the same month last year. The government also revised the deficit in May to $48.0 billion from $48.7 billion.
