[News] U.S. Exports Hit Record High in August, Trade Deficit Continues to Narrow

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U.S. exports reached a new high, and the trade deficit continued to narrow in August, according to data released by the U.S. Bureau of Economic Analysis and the U.S. Census Bureau on October 8.

In August, U.S. exports totaled $271.8 billion, marking a year-over-year increase of 5.1% (up 2% month-over-month), reaching a record high. Goods exports rose 2.5% month-over-month to $179.4 billion, the highest level since September 2022, with most categories showing growth.

However, semiconductors and crude oil exports declined by $800 million and $1.1 billion, respectively. Service exports increased by 1% month-over-month to $92.3 billion.

 

Imports amounted to $342.2 billion, showing a year-over-year increase of 7.56% (up 0.9% month-over-month). Goods imports fell by 1.41% month-over-month to $274.3 billion, driven by a $1 billion reduction in crude oil imports due to falling oil prices in August, along with an $1.1 billion decrease in passenger vehicle imports.

Meanwhile, service imports rose by 1.1% to $67.9 billion, reaching a record high, primarily due to increased spending on travel and intellectual property.

 

The trade deficit narrowed to $70.4 billion, down 18.11% year-over-year (down 10.8% month-over-month), the smallest deficit in five months.

 

Although U.S. exports continue to reach new highs, some economists expect that U.S. export growth may not be sustainable, given ongoing economic instability in China and signs of weakening growth in the eurozone. In contrast, imports are expected to continue growing, supported by strong domestic consumption demand and the resolution of recent port strikes.

Overall, the market anticipates that Trade could exert pressure on U.S. GDP growth in 2025.