With so much attention focused on trade data in recent weeks, Trump will hardly be happy to learn that not only did the US trade deficit grow by 1.6% in February from $56.7BN to $57.6BN, missing expectations of a $56.8BN print, but was the highest monthly trade deficit going back ten years to 2008.

According to the Census Bureau, the deficit increased to $57.6 billion, as imports increased more than exports. Broken down by components, the goods deficit increased $0.3 billion in February to $77.0 billion. The services surplus decreased $0.6 billion in February to $19.4 billion.

The good news is that exports of goods and services increased $3.5 billion, or 1.7% , in February to $204.4 billion. Exports of goods increased $3.0 billion and exports of services increased $0.5 billion.

The increase in exports of goods mostly reflected increases in industrial supplies and materials

  • ($2.0 billion), in automotive vehicles, parts, and engines ($0.9 billion), and in capital goods ($0.7 billion). A decrease in consumer goods ($0.8 billion) partly offset the increases.
  • The increase in exports of services mostly reflected increases in transport ($0.2), in travel (for all purposes including education) ($0.1 billion), and in charges for the use of intellectual property ($0.1 billion).

    • The bad news is that imports of goods and services increased slightly more in absolute dollar terms, by $4.4 billion, or also 1.7% of total, in February to $262.0 billion. Imports of goods increased $3.3 billion and imports of services increased $1.1 billion.

  • The increase in imports of goods mostly reflected increases in capital goods ($1.8 billion), in industrial supplies and materials ($0.8 billion), and in foods, feeds, & beverages ($0.8 billion).
  • The increase in imports of services mostly reflected an increase in charges for the use of intellectual property ($1.0 billion), which included payments for the rights to broadcast the 2018 Winter Olympic Games
    • Print Friendly, PDF & Email

    Related Posts