Trade Deficit Shrinks

The 10.8 percent drop in the deficit reflected growth in US exports and a slight decline in imports.

August exports were $271.8 billion, $5.3 billion more than July exports, while imports hit $342.2 billion, $3.2 billion decline from the previous month.

The August decrease in the goods and services deficit reflected a decrease in the goods deficit of $8.4 billion to $94.9 billion and an increase in the services surplus of $100 million to $24.4 billion.

Year-to-date, the goods and services deficit increased $47.1 billion, or 8.9 percent, from the same period in 2023. Exports increased $79 billion or 3.9 percent, while imports were up $126.1 billion or 4.9 percent.

The average goods and services deficit decreased $1.6 billion to $74.1 billion for the three months ending in August.

Exports of goods increased $4.4 billion to $179.4 billion in August, while service exports were up by $900 million to $92.3 billion in August.

Imports of goods dropped $3.9 billion to $274.3 billion in August. Services imports increased $700 million to $67.9 billion.

The closely-watch US trade deficit with China fell by $2.6 billion to $24.7 billion in August. Exports increased $1.1 billion to $12.6 billion and imports decreased $1.5 billion to $37.3 billion.

Deficits also were recorded with the European Union at $19.1 billion, Mexico $14.3 billion, Vietnam $9.8 billion, Ireland $8 billion, Taiwan $7.3 billion, Germany $6.6 billion, Japan $4.9 billion, South Korea $4.9 billion, Canada $3.9 billion, Italy $2.9 billion, India $2.7 billion, Switzerland $2.5 billion, France $1.7 billion, Malaysia $1.1 billion, Israel $1 billion, Belgium $600 million and Saudi Arabia $100 million.

The United States ran trade surpluses with Netherlands at $5.5 billion, South and Central America $4 billion, Australia $1.9 billion, Hong Kong $1.6 billion, Brazil $800 million, Singapore $500 million and United Kingdom $300 million