US trade deficit widens more than expected in April

America's trade shortfall with the rest of the world widened in April although in a positive sign for consumption, demand for imports strengthened.

The total trade deficit in goods and services widened from -$45.3bn in March to -$47.6bn, according to the Department of Commerce.

Economists had penciled in a smaller deficit of -$44.0.

The gap between imports and exports in March was originally estimated at -$43.7bn.

Total exports slipped by 0.3% month-on-month in April, as imports rose by 0.9%; with purchases of consumer goods, capital goods and food from overseas especially strong.

"We think the pickup in consumer goods imports likely bodes well for private consumption expenditure in Q2," Barclays Research's Blerina Uruci said in a research note sent to clients.

Despite that, the larger than expected shortfall saw Barclays mark down its tracking estimate for US second quarter gross domestic product growth from 2.2% to 2.0%.