WASHINGTON (MarketWatch) - The U.S. trade deficit fell in July and the June gap was revised lower, offering evidence that trade was slightly less of a drag on the nation's growth during the summer than initially reported. The trade deficit with China, however, rose to a record high $30.9 billion, the Commerce Department said Thursday. In July, the U.S. trade deficit declined by 0.6% to a seasonally adjusted $40.5 billion. Economists polled by MarketWatch forecast a deficit of $42 billion. U.S. exports rose 0.9% to $198 billion. Imports advanced 0.7% to $238.6 billion. Imports and exports of autos and parts both hit record highs in July, a reflection of the strong demand for American and foreign-made vehicles. The June trade gap, meanwhile, was revised down to $40.8 billion from $41.5 billion.