The US merchandise-trade deficit narrowed more than expected in June, falling 10.8% to $86 billion, according to advance figures from the Commerce Department. Economists surveyed by Reuters had anticipated a gap of roughly $98 billion, making the outcome smaller than any estimate in the poll. Imports dropped 4.2% to $264.2 billion, with the value of consumer goods shipments sinking to the lowest level since September 2020. Inbound deliveries of industrial supplies and motor vehicles also declined, reversing the pre-tariff stockpiling that had swelled ports earlier in the year. Exports slipped 0.6% to $178.2 billion as a rise in agricultural and capital-goods sales was outweighed by a pullback in industrial supplies. On a year-earlier basis, goods imports were down 2.5% while exports were up 3.6%. The sharper contraction in imports suggests trade could add to second-quarter gross domestic product after subtracting a record 4.61 percentage points in the first quarter. Comprehensive June trade data, including services, will be released on 5 August.