He trade deficit from United States extended in February for the third consecutive month because the value of exports fell more than that of imports.
He deficit in trade in goods and services grew 2.7% to US$70.5 billion, the highest level in four months, according to data released Wednesday by the Commerce Department. Figures are not adjusted for inflation. The median estimate in a Bloomberg survey of economists pointed to a deficit of $68.8 billion.
EThe value of imports decreased by 1.5%, while exports fell by 2.7%. Both readings reflect weaker trade in goods.
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On an inflation-adjusted basis, the goods trade deficit increased to US$104.6 billion, also the widest in four months. US exports of consumer goods, motor vehicles and capital equipment declined in February.
While the goods trade deficit widened, the US services surplus increased. Travel exports — that is, visitor spending to the US — rose to a three-year high. Travel imports, a proxy for Americans traveling abroad, showed little change.
Imports of consumer goods fell for the first time in three months on an inflation-adjusted basis. Motor vehicle imports also declined.
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LThe drop in both exports and imports highlights a decline in demandparticularly goods, both at home and abroad amid a shift toward spending on services, as well as an uncertain economic outlook.
Before Wednesday’s report, GDPNow, from the Federal Reserve Bank of Atlanta, estimated that net exports would add 0.44 percentage point to gross domestic product in the first quarter.
The US trade deficit in goods with China, on an adjusted basis, widened to $25.2 billion, its highest level in four months.
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