WASHINGTON -- The U.S. international trade gap narrowed in August to $42.4 billion, slightly smaller than the $42.6 billion gap expected and following a revised smaller $43.6 billion gap in July. The narrower August trade gap was the result of a rise in exports and a decline in imports.
BEA said they cannot quantify the impact of Hurricane Harvey, which hit in late-August.
The revised Census goods gap reported Thursday was larger than the advance estimate of $62.9 billion, coming in at $63.3 billion, narrower than the $63.8 billion gap in July. The overall BOP goods gap narrowed to $64.4 billion from $65.3 billion in July.
At the same time, the services surplus widened to $22.0 billion from $21.7 billion.
The chained goods gap was unchanged after rounding at $61.8 billion, so the third quarter average through the first two months was narrower than the second quarter average of $62.4b, a small positive for third quarter GDP.
The petroleum gap widened to $4.8 billion in August from $3.0 billion in July, while the nonpetroleum gap narrowed to $58.5 billion from $60.8 billion.
Exports were driven higher by gains in consumer goods, autos, and capital goods that were offset by declines in industrial supplies and food.
Imports were pulled down by declines food, industrial supplies, and capital goods that offset gains in autos and consumer goods.
The unadjusted trade gaps with Mexico, China, and Japan all widened in August, while the gaps narrowed with Canada and the EU.
