Trade Gap in U.S. Narrows to 11-Month Low as Exports Increase
Thursday, 5 October 2017 19:47 WIB | UNITED STATES |Ekonomi AS
Improving global demand and a weaker dollar are helping boost U.S. exports, with the trade deficit narrowing to an 11-month low in August, Commerce Department data showed Thursday.
Highlights of Trade (August) :
Deficit decreased 2.7% to $42.4b (est. $42.7b) from a revised $43.6b in the prior month.
Exports rose 0.4% to $195.3b, highest since December 2014, led by pharmaceuticals, cars, telecommunications equipment.
Imports fell 0.1% to $237.7b on industrial supplies, capital goods.
The report indicates that an improving picture for the global economy is supporting demand for American goods and services. Exports of capital goods and non-petroleum exports were both the highest since April 2015, while the goods deficit was the smallest since October 2016.
At the same time, the merchandise-trade deficit with China, not adjusted for seasonal fluctuations, was the widest since September 2015 at $34.9 billion.
Trade and inventories are the two volatile components that feed into the government™s calculation of gross domestic product. In the last 12 quarters, for example, trade has contributed to growth five times and subtracted in seven periods.