Exports And Imports Rise, Trade Deficit Narrows

The nation's deficit in goods trade narrowed slightly to $58.4 million in August. Exports rose a solid 0.7 percent in the month reflecting strength in industrial supplies, vehicles, and also consumer goods. The gain in exports comes despite a 3.5 percent monthly fall back in food exports which surged 34 percent in July and made for a rare 3.0 percent jump in that month's total exports. Imports also rose in the latest month, up 0.3 percent and reflecting a bounce back for capital goods as well as a gain in food. The gain in exports is welcome as is the gain in capital goods imports. Today's report points to little change in next week's international trade data.

Recent History Of This Indicator:
A surge in food exports helped cut the nation's goods gap from June's $65.6 billion to $60.3 billion in July (revised from $59.3 billion). But other export readings were less favorable including a decline for capital goods that points to weak global investment in new equipment. Imports of consumer goods were also weak in July which is a plus for GDP but points to lack of business confidence in domestic consumer demand. Forecasters see the headline for international trade in goods widening following July's dip, to a consensus deficit of $62.3 billion.