The Commerce Department announced that the U.S. trade gap dropped 2.7% from a revised $43.6 billion in July to $42.4 billion in August, which reached the 11-month low.
According to the Commerce Department, the data in August probably reflect some initial effects of Hurricane Harvey, and the impact from Hurricane Harvey, Irma and Maria will be reflected in the subsequent reports.
Exports increased 0.4% from $194.5 billion in July to $195.3 billion in August, which is the highest level since December. The increase in exports, which contributes to the narrowed trade deficit in August, was led by cars, telecommunications equipment, and pharmaceuticals.
Imports dropped 0.1% from $238.1 billion in July to $237.7 billion in August. Imports of industrial supplies and materials, computer accessories and civilian aircraft dropped during the month, while imports of passenger cars showed increase in August.
Exports of services increased 0.4% to $66.1 billion. Merchandise-trade deficit decreased from $63.8 billion to $63.3 billion, and after eliminating the effects of price fluctuations, the goods-trade gap changed slightly to $61.8 billion.
In addition, in August, the gap in goods with Mexico rose 26% to $6.2 billion, and goods deficit with China increased 4% to $34.9 billion.