U.S. trade deficit lowest in more than a year as imports drop

WASHINGTON (Reuters) – The U.S. trade deficit dropped to its lowest level in more than a year in August as slowing domestic demand amid stiff interest rate increases from the Federal Reserve weighed on imports.

The trade deficit narrowed 4.3% to $67.4 billion last month, the lowest level since May 2021, the Commerce Department said on Wednesday. Imports declined 1.1% to $326.3 billion. Exports slipped 0.3% to $258.9 billion.

(Reporting By Lucia Mutikani; Editing by Andrew Heavens)