The US Trade Deficit – the difference between imports and exports – fell 3.8% to $48.7bn (£31.3bn) in May.

The figure had stood at  $50.6bn in April.

This was due to a fall in oil price and a rise in exports to China and Europe.

According to the Commerce Department, imports fell 0.7% to $231.8bn, whilst exports rose 0.2% to $183.1bn, helped by heavy machinery and telecoms equipment sales.

The trade deficit with China increased to $26bn –  up from $24.5bn the month before. Exports to China rose 5.2%, but imports rose by a faster 5.8%.

Exports to the European Union were up 2.6% in May.