The nation’s trade deficit in goods dropped 7.3% in August to $84.3 billion, indicating a decrease in consumer imports, including the new iPhone.
According to Census Bureau figures, the trade gap in goods slid from $90.9 billion in July.
Additionally, an early estimate showed a 0.1% decrease in wholesale inventories for August. Conversely, retail inventories saw a 1.1% increase during the same period.
In August, imports fell 1.2% to $253.1 billion, primarily due to a decrease in consumer goods such as the newest iPhones. This decline follows a period of high shipments as Apple AAPL, +0.15% prepared to launch its new product line.
On the other hand, exports of American-made goods increased by 2.2% to $168.8 billion.
The full trade report for August, which includes services like tourism and travel, will be released next week.
The Big Picture
Lower trade deficits and higher inventories contribute positively to the gross domestic product (GDP).
With the trade gap shrinking and inventories seeing overall growth in August, there may be a slight boost to GDP in the third quarter. It is anticipated that the economy will show a growth rate of 4% or more for the three-month period from July to August.
Following the government’s report on a small increase in core inflation, the Dow Jones Industrial Average DJIA, +0.35%, and S&P 500 SPX, +0.59% are expected to rise in Friday trades.