The nominal trade deficit narrowed for the fourth consecutive month in August to $40.1 billion as exports grew faster than imports during the month. For both exports and imports, August’s increases were driven by capital goods (excluding autos) and consumer goods. Exports and imports of automotive products fell, reversing July’s outsized gains. According to Atlanta Fed’s GDPNow forecast, foreign trade is likely to boost gross domestic product growth in the third quarter, as exports are expected to outpace import growth.
On a year-over-year basis, growth of both exports and imports remained lackluster in August, continuing on a low trajectory compared with recent history (excluding plunges in international trade during past recessions).
