The U.S.
Commerce Department announced on Tuesday
that the U.S. goods and services trade deficit narrowed by 10.8 per cent to $70.4 billion in August compared to a revised shortfall of $78.9
billion (from $78.8 billion) in July. This marked the smallest trade
gap since March ($68.0
billion).
Economists had anticipated
a shortfall of $70.6 billion for August.
According to
the report, the August drop in the goods and services deficit reflected a decline
in the goods deficit of $8.4 billion to $94.9 billion and a gain in the
services surplus of $0.1 billion to $24.4 billion.
Overall,
exports of goods and services from the U.S. climbed by 2.0 per cent m-o-m to $271.8
billion in August, the highest level on record, while imports fell by 0.9 per
cent m-o-m to $342.2 billion.
Year-to-date, the goods and services
deficit jumped by 8.9 per cent from the same period in 2023. Exports increased
by 3.9 per cent, while imports surged by 4.9 per cent.