The U.S. trade deficit fell in June to its lowest level in 18 months, with a rise in exports and a decline in imports, the Commerce Department reported Thursday.

The total trade deficit fell 10.6 percent to 42.9 billion U.S. dollars in June, down from 48 billion dollars in May. Exports totaled 185 billion dollars, 1.7 billion dollars higher than the previous month. Imports shed 3.5 billion dollars to 227.9 billion dollars.

The increase in exports of goods mainly reflected stronger exports of consumer goods, automotive vehicles, parts, and engines. The decrease in imports largely reflected decreases in industrial supplies and materials, as well as capital goods and consumer goods.

The U.S. trade deficit with the 27-nation European Union narrowed to 8.4 billion dollars in June. Its trade deficit with China rose 5.2 percent to 27.4 billion dollars.

The total goods and services deficit decreased 7.4 billion dollars from June 2011 to June 2012. Exports were up 12.3 billion dollars, or 7.1 percent, and imports were up 4.9 billion dollars, or 2.2 percent, the report said.

Trade deficit has been a drag of the U.S. economic growth for many years. The U.S. economy grew at an annual rate of 1.5 percent in the second quarter of this year, with real exports and imports increasing 5.3 percent and 6 percent respectively.