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Home>UPDATE: U.S. trade deficit falls to 11-month low

UPDATE: U.S. trade deficit falls to 11-month low

UPDATE: U.S. trade deficit falls to 11-month low

10/05/2017

By Jeffry Bartash, MarketWatch

Deficit shrinks 2.7% to $42.4 billion in August; China gap widens

The numbers: The U.S. trade deficit dropped 2.7% in August to $42.4 billion from $43.6 billion in July. Economists polled by MarketWatch had forecast a $42.6 billion gap.

(http://projects.marketwatch.com/economic-data/?series=BOPGSTB&theme=white&hed=Trade+deficit&dek=In+billions%2C+seasonally+adjusted&source=Commerce+Department+via+FRED&source_link=http%3A%2F%2Fwww.bea.gov%2Fnewsreleases%2Frels.htm&drad=on&start=2010-10-01&end=2017-10-01&predictions=none)

Imports slipped 0.1% to $237.7 billion. Exports rose 0.4% to $195.3 billion, the Commerce Department said Thursday (https://www.bea.gov/newsreleases/international/trade/2017/trad0517.htm).

What happened: The trade deficit shrank mainly because of higher U.S. exports of drugs, semiconductors and equipment for phone networks. Imports were essentially unchanged.

Imports of goods from China set a fresh record at $45.8 billion. The goods deficit with Vietnam was the highest ever at $3.6 billion.

The big picture: A smaller deficit boosts gross domestic product and third-quarter GDP could get a lift.

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