America's Trade Deficit Fell In August

October 10, 2008 9:29 p.m. EST

Washington, DC (AHN) - The Commerce Department reported Friday that the U.S. trade deficit contracted 3.5 percent to $59.1 billion in August as oil imports dropped from the month before.

U.S. exports also fell, but not enough to offset the drop in foreign oil imports, which had been at a record high in July. Oil imports totaled $43.7 billion in August, down from $51 billion in July.

Total U.S. imports for August were $223.9 billion, down 2.4 percent from July. Exports reached $164.7 billion in August, down 2 percent from July when they hit a record high.

The trade deficit with Canada fell 10 percent in August to $7.4 billion. However, the deficit with China rose 1.8 percent to $25.3 billion as imports kicked-up with U.S retailers stocking up for the holiday season.

For the year, the trade deficit is running at an annual rate of $717.1 billion.