NEW YORK (CNN/Money) - The U.S. trade gap narrowed in July, the government said Wednesday, as exports of American-made goods surged and imports fell.

The Commerce Department said the trade gap, which measures the difference between imported and exported goods and services, fell to $34.5 billion in July from $37.16 billion in June. Economists, on average, expected the trade gap to shrink to $37 billion, according to Briefing.com.

Exports jumped for the fifth straight month to $82.23 billion, the highest since June 2001, from $82.17 billion in June, indicating that demand for U.S. goods was increasing, partially as a result of a weaker dollar, which was hurt this summer by weaker stock prices, worries about corporate accounting and other woes.

Imports, on the other hand, fell to $117.78 billion from $118.92 billion in June, the first drop following six months of gains and a worrisome hint that domestic demand may have slowed down.

But import activity was exceptionally high in the months leading up to the July 1 expiration of the contract between the International Longshore and Warehouse Union, which represents more than 10,000 West Coast dock workers, and U.S. importers and exporters.

The contract was extended on a day-to-day basis after July 1, averting a strike, and negotiations between workers and importers and exporters have resumed after a long break.