The U.S. trade deficit unexpectedly expanded in February, according to a report from the Commerce Department released Thursday. The deficit increased to $68.9 billion, up from the revised figure of $67.6 billion in January.
Contrary to this, economists had predicted a reduction in the trade deficit to $67.0 billion from the preliminary figure of $67.4 billion reported for the preceding month. Yet, the broader deficit in February equated to the highest difference seen in the amount of imports and exports since the deficit hit $72.2 billion in April of the previous year.
The growth in the trade deficit was observed even as the goods deficit decreased slightly to $91.4 billion in February from $91.7 billion in January. Concurrently, the services surplus dropped to $22.5 billion from the earlier figure of $24.1 billion.
An uptick of 3.9% was seen in the importation of services, reaching a value of $63.8 billion. This was primarily due to marked increases in travel and transport services. The value of services exported rose by 1.0% to $86.4 billion.
February saw a surge of 2.2% in the total value of imports, hitting $331.9 billion after a 1.2% rise to $324.8 billion observed in January. This rise in import value - the highest in over a year - was driven by an influx of services and significant increases in imports of household goods including cell phones, along with foods, beverages, feeds, and auto vehicles, parts, and engines.
On the other hand, the total value of exports increased by 2.3%, achieving a record high of $263.0 billion in February after a minimal rise of 0.1% to $257.2 billion in January. This was due to a surge in the export of industrial supplies and materials, including crude oil, as well as foods, feeds, beverages, and civilian aircraft. It was enough to counterbalance a slump in the export of auto vehicles, parts, and engines.
