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

Stacked containers and cranes are shown at the Port of Los Angeles in Los Angeles, California, U.S. November 22, 2021. REUTERS/Mike Blake

WASHINGTON, Oct 5 (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

Our Standards: The Thomson Reuters Trust Principles.