Courtesy of Mish.
The trade deficit shrunk by 4.6% matching the lowest Econoday estimate.
What affect do you think today’s report will have on GDP estimates for the first quarter?
Ponder that question while we investigate the report and details from the Census Bureau report on International Trade.
Econoday commented: “For GDP, these data are very positive and help offset not only January’s large trade deficit but also what’s evolving as a weak quarter for domestic consumer spending. For cross-border trade, this report is not upbeat, showing less demand for goods and services both here and abroad.”
US International Trade in Goods and Services
The U.S. Census Bureau and the U.S. Bureau of Economic Analysis, through the Department of Commerce, announced today that the goods and services deficit was $43.6 billion in February, down $4.6 billion from $48.2 billion in January, revised. February exports were $192.9 billion, $0.4 billion more than January exports. February imports were $236.4 billion, $4.3 billion less than January imports.
The February decrease in the goods and services deficit reflected a decrease in the goods deficit of $4.6 billion to $65.0 billion and an increase in the services surplus of less than $0.1 billion to $21.4 billion.
Year-to-date, the goods and services deficit increased $2.8 billion, or 3.1 percent, from the same period in 2016. Exports increased $25.8 billion or 7.2 percent. Imports increased $28.6 billion or 6.4 percent.
Import Key Points
- Imports of goods on a Census basis decreased $4.1 billion.
- Consumer goods decreased $3.1 billion.
- Cell phones and other household goods decreased $1.9 billion.
- Automotive vehicles, parts, and engines decreased $2.6 billion.
- Passenger cars decreased $2.1 billion.
- Industrial supplies and materials increased $1.4 billion.
- Crude oil increased $1.3 billion.
Motor Vehicles and Parts, Phones
Over half of the decrease in imports was due to a decline in motor vehicles and parts. Cell phones accounted for the rest.
