With the value of exports jumping and the value of imports falling, the Commerce Department released a report on Thursday showing the U.S. trade deficit narrowed much more than expected in the month of August.
The Commerce Department said the trade deficit shrank to $58.3 billion in August from a revised $64.7 billion in July, falling to the lowest level since September 2020.
Economists had expected the trade deficit to decrease to $62.3 billion from the $65.0 billion originally reported for the previous month.
The narrower than expected trade deficit came as the value of exports jumped by 1.6 percent to $256.0 billion, while the value of imports fell by 0.7 percent to $314.3 billion.
The increase in the value of exports largely reflected a surge in the value of exports of industrial supplies and materials, including crude oil.
Exports of capital goods and consumer goods also saw notable growth, while exports of automotive vehicles, parts and engines slumped.
Meanwhile, the decrease in the value of imports partly reflected a steep drop in the value of imports of consumer goods, particularly cell phones and other household goods.
Imports of capital goods also showed a significant decline, helping offset a spike in the value of imports of industrial supplies and materials such as crude oil.
