Tax & Spend

US Goods-Trade Gap Narrows to Smallest Since October 2021

  • Merchandise-trade deficit shrank 3.2% to $87.3 billion
  • Wholesale and retail inventories surged to records in August
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The US merchandise-trade deficit narrowed in August to the smallest since October 2021 as both imports and exports dropped, suggesting a tailwind for economic growth in the third quarter.

The shortfall shrank 3.2% to $87.3 billion last month, Commerce Department data showed Wednesday. The figures, which aren’t adjusted for inflation, compared with a median estimate for a gap of $89 billion in a Bloomberg survey of economists.