Source: Economics Group of Wells Fargo Bank, N.A.
The U.S. deficit in international trade narrowed for the fifth consecutive month in August. But despite the recent sharp narrowing, the U.S. is still running an outsized deficit compared to prior to what prevailed pre-pandemic. The sharp narrowing to date can be traced to slower import growth specifically, and the August data position net exports to be a considerable boost to third quarter growth, likely more than the three percentage points we are presently forecasting.
The Narrowing Continues
The U.S. trade deficit narrowed to $67.4 billion in August from $70.5 billion previously. August marked the fifth consecutive month that the balance has narrowed and leaves the deficit 37% smaller than it was at its peak back in March of this year. Even with the sharp narrowing, the U.S. continues to run an outsized deficit compared to prior to the pandemic—in 2019, the deficit averaged “just” $46.6 billion. READ FULL ARTICLE>>