The Census Bureau and the Bureau of Economic Analysis said that the U.S. trade deficit widened to its highest level in six months. The trade deficit rose from $45.88 billion in January to $47.06 billion in February. The increase stemmed primarily from an increase in goods imports (up from $180.64 billion to $183.33 billion) that was enough to offset the gain in goods exports (up from $116.77 billion to $118.59 billion). In addition, the service sector trade surplus narrowed from $17.98 billion to $17.68 billion. Meanwhile, the petroleum trade deficit declined from $4.62 billion in January to $3.55 billion in February. Indeed, imports of crude oil fell to their lowest level in 14 years.
Looking more closely at goods exports, the largest increases in February came from consumer goods (up $1.06 billion), automotive vehicles and parts (up $344 million) and foods, feeds and beverages (up $310 million). Exports were lower for capital goods (down $271 million) and industrial supplies and materials (down $179 million). On the other side of the ledger, goods imports were mostly higher on net, as noted above. Imports were boosted by strong monthly growth in consumer goods (up $3.60 billion), capital goods (up $998 million) and foods, feeds and beverages (up $488 million). In contrast, automotive vehicles and parts (down $1.53 billion) and industrial supplies and materials (down $948 million) imports were reduced in February.
Overall, these data continue to reflect ongoing challenges in growing international demand, particularly with a strong U.S. dollar and lingering economic woes in key export markets. Through the first two months of 2016, U.S.-manufactured goods exports totaled $161.75 billion (using non-seasonally adjusted data), down 7.43 percent from the 2015 year-to-date level of $174.74 billion.
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