The Commerce Department reported Thursday that the U.S. trade deficit fell 4.3% to $70.1 billion in July after surging to a record $73.2 billion in June.

Economic recovery overseas helped boost American exports while imports declined.

The trade deficit represents the gap between what the country exports to the rest of the world and the imports it purchases from other countries.

In July, exports jumped 1.3% to $212.6 billion, reflecting revived overseas demand, while imports edged down a slight 0.2% to $282.9 billion.

The politically sensitive goods deficit with China rose 2.9% in July from June to $28.6 billion and totals $187.2 billion through the first seven months of this year, up 15% from the same period a year ago.

As usual, the trade deficit with China was the largest U.S. deficit with any country.

Economists believe that deficits for the rest of the year should moderate as the surge in consumer demand after the country re-opened will slow.