The Dow Jones (DJIA) opened Wednesday’s trading session in positive territory after the Bureau of Economic Analysis (BEA) reported a contraction in the U.S. trade deficit.
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The deficit shrank by $18.6 billion, or 23.8%, month-over-month to $59.6 billion in August. Analysts were expecting a deficit of $61 billion. The data was originally scheduled to be released on October 7 but was delayed due to the government shutdown.
U.S. Imports Fall at Highest Rate in Four Months
During August, U.S. imports fell by 5.1% to $340.4 billion, marking the largest rate of decline in four months. A large portion of the drop was attributed to fewer imports from Switzerland, which faced elevated tariffs during the month. Last week, the U.S. agreed to lower its tariff on Swiss goods to 15% from 39%. Meanwhile, U.S. exports ticked higher by 0.1% to $280.8 billion.
On a year-to-date basis, the trade deficit increased by $142.5 billion, or 25%. The BEA added that the publication date of September’s trade balance update, originally scheduled for November 4, is still to be determined.
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