The goods trade deficit decreased to Euro 3.2 billion in August from Euro 5.3 billion in the preceding month.
According to the report, the trade deficit, which measures the gap between what the United States imports and what it exports, narrowed to 42.4 billion dollars in August, the lowest level in almost a year and down 1.2 billion dollars from July.
Imports decreased 0.1% in August, and exports increased 0.4% from July.
The report indicates that an improving picture for the global economy is supporting demand for American goods and services. The expected deficit was Euro 5.4 billion.
"The most obvious theme is that energy exports were disrupted and energy imports rose, presumably in reaction to Harvey", said Stephen Stanley, chief economist at Amherst Pierpont Securities, in a note to clients.
The Commerce Department said the August data probably reflect "some of the initial effects" of Hurricane Harvey, which struck the Gulf Coast of Texas late in the month. In the first eight months of 2017, the value of US imports rose 6.4% and USA exports increased 5.8% compared with the same period a year earlier.
The politically sensitive trade deficits with Mexico and China grew. Exports of services declined 0.4% to $66.1 billion. At the same time, the surplus on services trade grew from Euro 0.1 billion to Euro 0.8 billion. Minimizing that gap boosts USA economic growth.