Trade Deficit Improves, Year on Year

The U.S. Census Bureau and the U.S. Bureau of Economic Analysis announced that the goods and services deficit rose to $70.5 billion in February, a $1.9 billion increase from January's revised figure of $68.7 billion. This increase was primarily driven by a rise in the goods deficit and a slight increase in the services surplus.

Key Figures:

1. February exports decreased by $6.9 billion to $251.2 billion, while imports dropped by $5.0 billion to $321.7 billion.
2. The goods deficit increased by $2.7 billion to $93.0 billion, and the services surplus rose by $0.8 billion to $22.4 billion.
3. Year-to-date, the goods and services deficit fell by 20.3%, or $35.5 billion, from the same period in 2022.
4. Exports grew by 10.8%, or $49.5 billion, while imports increased by 2.2%, or $14.0 billion.

Three-Month Moving Averages:

1. The average goods and services deficit rose by $3.3 billion to $68.8 billion for the three months ending in February.
2. Average exports decreased by $0.3 billion to $252.7 billion, while average imports increased by $3.0 billion to $321.5 billion.
3. Year-over-year, the average goods and services deficit declined by $15.7 billion from the three months ending in February 2022.
4. Average exports grew by $22.0 billion, and average imports increased by $6.3 billion.

Trade Surpluses and Deficits:

The February figures show trade surpluses with South and Central America ($4.7 billion), Hong Kong ($2.5 billion), Netherlands ($1.8 billion), Belgium ($1.6 billion), Australia ($1.5 billion), Brazil ($0.9 billion), United Kingdom ($0.5 billion), and Singapore ($0.2 billion).

Deficits were recorded with China ($25.2 billion), European Union ($18.1 billion), Mexico ($12.0 billion), Vietnam ($8.1 billion), Germany ($7.9 billion), Japan ($5.7 billion), Canada ($5.6 billion), Taiwan ($4.7 billion), South Korea ($4.5 billion), Ireland ($3.7 billion), India ($3.7 billion), Italy ($3.4 billion), Malaysia ($2.8 billion), Switzerland ($1.7 billion), Saudi Arabia ($0.7 billion), Israel ($0.6 billion), and France ($0.6 billion).

The deficit with China grew by $3.2 billion to $25.2 billion in February, as exports decreased by $1.4 billion to $13.1 billion and imports increased by $1.8 billion to $38.2 billion.