US trade deficit narrows sharply in August
Trade could be a small drag on economic growth in the third quarter
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THE US trade deficit narrowed sharply in August as exports increased and imports fell, suggesting that trade could be a small drag on economic growth in the third quarter.
The trade gap contracted 10.8 per cent to US$70.4 billion from a revised US$78.9 billion in July, the Commerce Department’s Bureau of Economic Analysis said on Tuesday (Oct 8).
Economists polled by Reuters had forecast the trade deficit would narrow to US$70.6 billion from the previously reported US$78.8 billion in July.
Trade has subtracted from gross domestic product for two straight quarters. Growth estimates for the third quarter are currently as high as a 3.2 per cent annualised rate.
The economy grew at a 3.0 per cent pace in the April-June quarter. REUTERS
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