The U.S. trade deficit significantly narrowed in August 2024, reaching its smallest level in five months. This reduction was primarily due to a 2% increase in exports, particularly in capital goods and motor vehicles, while imports fell by 0.9%. The trade gap decreased by 10.8% to $70.4 billion, with the $8.5 billion narrowing being the largest since March 2023. This improvement in the trade balance could potentially have a positive impact on the country’s gross domestic product for the third quarter.