WASHINGTON -- The U.S. trade deficit unexpectedly narrowed for the first time in four months in August, with exports rising to their highest level of the year and imports easing despite higher oil prices.
U.S. exports in August rose 0.2% to $128.22 billion from $128.00 billion the previous month. Exports were at their highest level since reaching $132.92 billion in December. Imports registered their first decline since May, meanwhile, falling 0.6% to $158.93 billion from $159.85 billion.
The U.S. deficit in international trade of goods and services decreased 3.6% to $30.71 billion from a downwardly revised $31.85 billion the month before, the Commerce Department said Friday. The July trade gap was originally reported as $31.96 billion.
The decline, the first since May, was a surprise on Wall Street. Economists surveyed by Dow Jones Newswires had expected a further widening in the deficit to $33.6 billion.
The recent resurgence of oil prices had been pushing the trade deficit back up, after a brief dip earlier in the year when the recession sapped demand for imports. However, exports have enjoyed a five-month uptrend, which bodes well for the economic outlook.
Trade has been one of the few consistent areas of support for the economy during the recession, which many economists believe has ended. Trade contributed 1.65 percentage points to second-quarter gross domestic product, despite a 0.7% contraction in the overall economy.
The real, or inflation-adjusted deficit, which economists use to measure the impact of trade on GDP, fell to $37.70 billion from $38.75 billion in July, Commerce said Friday.
The U.S. paid $17.38 billion for crude oil imports in August, which was lower than $18.51 billion the month before, as volumes dropped despite a continued rise in oil prices. The average price per barrel climbed $2.27 to $64.75. Crude import volumes fell to 268.43 million barrels from 296.27 million.
The total U.S. bill for all types of energy-related imports decreased, as well, to $22.39 billion from $23.72 billion in July.
U.S. exports of industrial supplies, such as steelmaking material and gold, increased $931 million in August. Auto exports gained by $496 million, while sales abroad of food, feed, and beverages went up by $96 million.
Meanwhile, capital goods exports slid by $1.32 billion, led by a drop in civilian aircraft sales. Exports of consumer goods, including artwork and jewelry, decreased $145 million during August.
As for imports, purchases of industrial supplies, including crude oil, decreased $988 million in August. Imports of foreign-made consumer goods fell $705 million, food and feed imports declined $130 million, and purchases of capital goods were down $65 million.
Imports of auto and related parts imports posted a $1.16 billion gain in August.
The U.S. trade deficit with China shrank in August to $20.23 billion from $20.42 billion the month before. Exports to the country rose by $279 million.
U.S. trade gaps with some other major trading partners narrowed as well, as the deficit with the euro area decreased to $4.32 billion from $6.72 billion and the trade shortfall with Canada fell to $1.51 billion from $2.09 billion.
However, the deficit with Japan rose to $4.34 billion, its highest level of the year, from $3.89 billion. The trade gap with Mexico increased to $3.95 billion from $2.93 billion.
