The trade deficit shrank to $41.86 billion in July, according to the Department of Commerce.
Economists had estimated that the trade deficit fell to $42.20 billion from a revised $45.21 billion in June. The month-over-month decrease in July totaled $3.3 billion.
Imports of consumer goods fell $2.6 billion, while imports of services increase $0.2 billion.
“You could say initial jobless claims and the U.S. trade deficit data are consistent with the “some further improvement” the Fed told us in July they were waiting for to hike rates,” Chris Rupkey at Bank of Tokyo-Mitsubishi wrote in a note to clients.