US Trade Deficit at 6-Month High

The US trade gap widened to USD 47.06 billion in February of 2016 from an upwardly revised USD 45.88 billion deficit in the previous month and above market expectations of USD 46.2 billion. It is the biggest gap in six months as imports rebounded and exports rose for the first time in five months.

The increase in the goods and services deficit reflected an increase in the goods deficit of USD 0.9 billion to USD 64.7 billion and a decrease in the services surplus of USD 0.3 billion to USD 17.7 billion.

Total exports increased 1 percent to USD 178 billion. Sales of goods increased USD 1.8 billion to USD 118.6 billion. Consumer goods went up USD 1.1 billion, diamonds increased USD 0.6 billion; pharmaceutical preparations grew USD 0.3 billion and other goods increased USD 0.6 billion. Exports of services decreased less than USD 0.1 billion to USD 59.5 billion: transport, which includes freight and port services and passenger fares, decreased USD 0.2 billion; financial services fell USD 0.1 billion while travel (for all purposes including education) increased USD 0.2 billion.

Exports to the European Union went up 10.2 percent, those to Canada rose 6.0 percent and sales to Mexico grew 0.9 percent while exports to China fell 2 percent.

Total imports went up 1.3 percent to USD 22.5 billion. Purchases of goods increased USD 2.7 billion to USD 183.3 billion: consumer goods increased USD 3.6 billion; pharmaceutical preparations rose USD 1.3 billion; toys, games, and sporting goods went up USD 0.6 billion while automotive vehicles, parts, and engines decreased USD 1.5 billion and passenger cars fell USD 1.3 billion. Imports of services increased USD 0.3 billion to USD 41.8 billion in February: travel (for all purposes including education) increased USD 0.1 billion; other business services, which includes research and development services; professional and management services; and technical, trade-related, and other services, increased USD 0.1 billion and transport rose USD 0.1 billion.

Year-to-date, the goods and services deficit increased USD 10.8 billion, or 13.1 percent, from the same period in 2015. Exports decreased 5.5 percent and imports fell at a slower 2.1 percent.

 US Trade Deficit at 6-Month High

BEA | Joana Taborda |
4/5/2016 1:54:38 PM