(Bloomberg) -- The US trade deficit narrowed in August to the smallest in five months, helped by a larger services surplus and a pickup in merchandise exports.

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The gap in goods and services trade shrank 10.8% from the prior month to $70.4 billion, Commerce Department data showed Tuesday. The $8.5 billion narrowing in August was the largest since March 2023. The latest figure was in line with the median estimate in a Bloomberg survey of economists.

The value of exports increased 2%, the most since February, while imports fell 0.9%. The figures aren’t adjusted for inflation.

Imports declined on a sharp pullback in the value of industrial supplies, due in large part to falling crude oil prices during the month. Inbound shipments of consumer goods edged higher, likely reflecting US retailers advancing overseas orders ahead of expected disruptions from a strike by dockworkers at major US ports. The walkout ended last week after three days to allow more negotiations until Jan. 15.

US goods exports jumped on increased shipments of capital goods and motor vehicles.

While goods and services trade in the second quarter subtracted the most from gross domestic product since early 2022, the latest net exports figures suggest less of an impact.

On an inflation-adjusted basis, the merchandise trade deficit narrowed to $88.6 billion in August, the smallest gap since February.

Survey results from the Institute for Supply Management painted a mixed picture of August trade. The group’s index of exports from US manufacturers contracted, while service providers’ business overseas grew.

Digging Deeper

• Travel exports — or spending by visitors to the US — increased to a record $18.2 billion

• Travel imports — a measure of Americans traveling abroad — also climbed, to $14.8 billion

• The US merchandise-trade deficit with China narrowed by $2.6 billion to $24.7 billion. The value of goods imported from China declined $1.5 billion

• The goods shortfall with Mexico widened slightly to $14.3 billion, the largest gap since February

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