Official figures show that the US trade deficit narrowed surprisingly in August due to higher exports and lower imports.
The Commerce Department reported that the trade gap fell to $30.7 billion from a revised $31.9 billion in July. Most analysts had expected a $33 billion deficit.
In percentage terms, the dip was the largest recorded since May. August exports rose slightly to $128.2 billion while imports fell to $158.9 billion.
The trade deficit with Canada, the largest US trading partner, narrowed by 27.9% to $1.5 billion in August from July while the deficit with Mexico, the second largest export destination and third largest import destination, widened by 34.6% to $4 billion.
The politically sensitive trade deficit with China narrowed by less than 1% to $20.2 billion. The US dollar has weakened against the currencies of most of its major trading partners, making its exports more competitive.
