US trade deficit narrowed in August as imports declined
The goods and services trade gap narrowed almost 24% from the prior month to US$59.6 billion
[WASHINGTON] The US trade deficit shrank in August as imports declined by the most in four months, official data showed on Wednesday (Nov 19) after a lengthy delay due to a government shutdown.
The goods and services trade gap narrowed almost 24 per cent from the prior month to US$59.6 billion, the Commerce Department said. The median estimate in a Bloomberg survey of economists was for a US$60.4 billion deficit.
The trade report had been scheduled for release on Oct 7 but was delayed by the longest federal government shutdown, which ended last week. The agency said an updated release date for the September trade data, initially slated for Nov 4, has yet to be determined.
In August, the value of imports decreased 5.1 per cent, while exports edged up. The figures are not adjusted for inflation.
A month earlier, the trade deficit widened as companies raced to import goods and materials before US President Donald Trump unveiled new tariffs on global trading partners.
The large monthly swings in trade this year have introduced similar volatility in the government’s measure of economic activity – gross domestic product. Prior to the August data, the Federal Reserve Bank of Atlanta’s GDPNow forecast saw net exports contributing 0.57 percentage point to third-quarter GDP.
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The slump in imports was led by a sharp drop in inbound shipments of nonmonetary gold, the agency said. Imports of capital goods including computer accessories and communications equipment also fell.
On an inflation-adjusted basis, the merchandise trade deficit narrowed to US$83.7 billion in August, the smallest since the end of 2023. BLOOMBERG
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