The U.S. trade deficit surprised analysts with a 1.7 percent drop in June from May as record exports of farm products and automobiles offset a rise in crude oil prices, reported the Associated Press. Analysts predicted the deficit would increase slightly because of oil prices.

According to the Commerce Department, the trade deficit was $58.1 billion in June, the lowest since February. Exports of goods and services reached a record $134.5 billion, a 1.5 percent increase, as a result of increases in farm products, such as corn and meat, and in semiconductor chips and cars. Meanwhile, imports set a record of $192.7 billion, a 0.5 percent increase, as purchases of foreign crude oil rose to the highest level in nine months.

For the first six months of the year, the U.S. trade deficit is at an annual rate of $705.5 billion, down 7 percent from a record $758.5 billion in 2006. Experts believe a weaker dollar and stronger global growth could boost exports, while a slowing U.S. economy will lower demand for imports, reducing the deficit this year.