US trade deficit shrinks to 5-month low

The US trade deficit tumbled to a five-month low in August, amid a slump in imports of oil and new vehicles, which bodes well for the country’s economic growth in the third quarter of this year.

Last month, the US trade deficit shed 10.8% to amount to $70.4 billion, from a revised $78.9 billion in July, the Commerce Department’s Bureau of Economic Analysis said today, Oct. 8.

This came against expectations for a decline to $70.6 billion in August.

In detail, imports plummeted by 0.9% to $342.2 billion, while exports rose 2.0% to $271.8 billion last month.