U.S. Goods Trade Deficit Narrows in February

The advance estimate of the U.S. international trade deficit in goods eased to $106.59 billion in February from the record $107.57 billion in January. A $106.8 billion deficit had been expected in the Action Economics Forecast Survey. Exports of goods increased 1.2% (20.7% y/y) following a 1.5% decline. Imports gained 0.3% (21.1% y/y) after increasing 1.8% in January.

The February increase in exports reflected a 6.3% (33.8% y/y) rebound in non-auto consumer goods which followed a 13.6% January decline. Exports of foods, feeds & beverages rose 3.6% last month (5.9% y/y) after holding steady in January. Industrial supplies & materials exports rose 2.6% last month (30.5% y/y) after edging 0.8% higher. Working 3.4% lower (1.6% y/y) were exports of autos & parts following a 5.1% decline. Capital goods exports were off 1.7% in February (+16.5% y/y) after they rose 2.4% in January.

Imports increased as industrial supplies & materials surged 4.4% in February (39.3% y/y) after rising 2.6% in January. Capital goods imports rose 1.5% (16.6% y/y), about as they did in January. Nonauto consumer goods imports improved 0.6% (20.0% y/y) following a 0.9% gain. These increases were offset last month by a 9.9% decline (+4.0% y/y) in imports of autos & parts which came after a 5.1% increase. Also falling by 3.0% (+26.1% y/y) were imports of foods, feeds & beverages which followed January's 8.6% rise.

The advance international trade data can be found in Haver's USECON database. The expectation figure is from the Action Economics Forecast Survey, which is in AS1REPNA.