The U.S. trade deficit in goods narrowed in August amid a decline in imports, which is being driven by slowing domestic demand as the Federal Reserve aggressively tightens monetary policy to tame inflation.

The goods trade deficit contracted 3.2% to $87.3 billion last month, the Commerce Department said on Wednesday. Goods exports fell $1.7 billion to $179.8 billion. Imports of goods dropped $4.6 billion to $267.1 billion.