Commerce: Trade deficit down slightly in August

  • Commerce: Trade deficit down slightly in August

Commerce: Trade deficit down slightly in August

The Commerce Department said Thursday that the trade gap - the difference between exports and imports - fell in August from $43.6 billion in July.

The U.S. goods and services deficit was $42.4 billion in August, the Commerce Department said Thursday, slightly less than in July following a small spike in exports. Exports in August totaled 195.3 billion dollars (an increase of 0.4 percent), while imports came to 237.7 billion dollars.

The report indicates that an improving picture for the global economy is supporting demand for American goods and services. The gap in goods with Mexico climbed 26 percent to $6.2 billion in August, and the goods deficit with China rose 4 percent to $34.9 billion.

Exports rose to Euro 39.8 billion from Euro 39.3 billion in previous month.

The dollar has weakened this year, making US exports cheaper for foreign customers, and consumer spending in the USA has been solid, aiding import purchases. Exports of services declined 0.4% to $66.1 billion. Minimizing that gap boosts USA economic growth. To shrink or even eliminate the gap, the US would either have to produce more or consume less. At the same time, the surplus on services trade grew from Euro 0.1 billion to Euro 0.8 billion.