Trade Deficit Reaches $42.3 Billion in February
According to the U.S. Census Bureau and the U.S. Bureau of Economic Analysis, February exports were $190.4 billion while imports reached $232.7 billion. U.S. exports declined by $2 billion from the previous month. Concurrently, February imports increased $1 billion from January, widening the trade deficit. Compared to 2013, February exports increased nearly 2% achieving $3.6 billion. Interestingly, U.S. imports also increased, but at a smaller rate at 1.1% or $2.6 billion.
Exports decreased in industrial supplies and materials. Increases in exports were realized in consumer goods, other goods, automotive vehicles, parts, and engines. Foods, feeds, and beverages stayed the same from January. Compared to the same month last year, exports decreased in industrial supplies and materials, automotive vehicles, parts, and engines, and other goods. Increases were realized in consumer goods, capital goods, and foods, feeds, and beverages for the same time period.
Imports of industrial supplies and materials and consumer goods decreased for the month of February compared to the same month in 2013. Automotive vehicles, parts, and engines, capital goods, and other goods imports increased for the same time period. “The increase in imports of services was mainly accounted for by an increase in royalties and license fees, which included payments for the rights to broadcast the 2014 Winter Olympic Games.”
The trade deficit with Canada decreased by nearly half from January. U.S. exports increased to $23.5 billion, while imports decreased by $1.3 billion. The trade deficit also decreased with China from January. Both U.S. exports and imports with China decreased. U.S. imports from China decreased drastically at a rate of $7.5 billion.