The U.S. trade deficit narrowed to US$46 billion in May as U.S. exports posted their best month on record.

The decline came after the deficit had mushroomed to an all-time monthly high of $48.1 billion in April. According to the U.S. Commerce Department, the 4.5% reduction in the deficit during May represented the largest over-the-month decrease since October 2002. The decline was the first after five straight months of increases.

The deficit with Canada, the United States’ biggest trading partner, narrowed to $4.8 billion from $5.6 billion.

The trade deficit figure for May was better than some analysts were expecting. They were forecasting the deficit to hold fairly steady.

Exports of U.S. goods and services rose to a record US$97.1 billion in May, representing a sizable 2.9% increase from April’s level. Exports were helped by a weaker U.S. greenback and some pickup in overseas economies.

Imports, meanwhile, increased by 0.4% to US$143.1 billion in May.

In May, U.S. exporters saw demand for a variety of their products increase. Sales of American-made automobiles, engines and parts rose by 1.3%, to US$7.2 billion, a record high.

Despite May’s stronger than expected report, Sherry Cooper, chief economista at BMO Nesbitt Bursn said “The trade deficit for Q2 is still likely to prove larger than in Q1, suggesting that trade will continue to weigh on growth.”