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The U.S. trade deficit shrank by 10% in August to a nearly three-year low of $58.3 billion, reflecting less demand for imported goods.
Lower deficits add to gross domestic product, the official scorecard of the economy. But they can also be a sign of a weakening U.S. or global economy.
Key details: Imports X% to $X billion in August. The U.S. imported fewer
Exports X% last month to $X billion. The U.S. shipped xxxx
Big picture: The deficit is on track in 2023 to be the lowest in four years, but it could be a double-edged sword.
Smaller trade gaps boost GDP and can appear to make the economy stronger. Part of the decline could also be a sign of softer spending and portend a weaker economy
Market reaction: The Dow Jones Industrial Average
DJIA,
and S&P 500
SPX,
were set to open lower in Thursday trades.
