US Trade Deficit Narrows With Surging Exports

The U.S. trade gap unexpectedly narrowed in August to its smallest level in seven months on an increase in exports, supporting views of sturdy economic growth in the third quarter.

The Commerce Department said on Friday the trade gap narrowed 0.5 percent to $40.1 billion. July’s trade deficit was revised to $40.3 billion.

Economists polled by Reuters had expected the deficit to widen to $40.9 billion in August from a previously reported $40.6 billion shortfall a month earlier.

 
Exports increased 0.2 percent to $198.5 billion in August, supported by rising sales aboard of U.S. capital goods, consumer goods and industrial supplies.

Imports edged up 0.1 percent to $238.6 billion. Imports of petroleum and autos declined. Petroleum imports were at their lowest level since Nov. 2010, aided by a domestic energy boom that has seen the United States reduce its dependence on foreign oil. Imports of capital goods were the highest on record.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza