Trade Deficit Widens, Once Again More Than Consensus

It's a never-ending trade deficit story. And the pace is accelerating.

The U.S. Census Bureau announced today that the goods and services trade deficit was $57.6 billion in February, up $0.9 billion from $56.7 billion in January. The bureau revised January slightly wider, from $56.6 billion as originally reported.

Exports, Imports, and Balance

  • February exports were $204.4 billion, $3.5 billion more than January exports.
  • February imports were $262.0 billion, $4.4 billion more than January imports.
  • The February increase in the goods and services deficit reflected an increase in the goods deficit of $0.3 billion to $77.0 billion and a decrease in the services surplus of $0.6 billion to $19.4 billion.
  • Year-to-date, the goods and services deficit increased $21.1 billion, or 22.7 percent, from the same period in 2017.
  • Year-to-date, exports increased $22.4 billion or 5.9 percent. Imports increased $43.6 billion or 9.1 percent.

By Country

  • The deficit with Mexico increased $1.0 billion to $6.6 billion in February. Exports decreased less than $0.1 billion to $21.9 billion and imports increased $0.9 billion to $28.5 billion.
  • The deficit with Germany increased $0.4 billion to $6.7 billion in February. Exports decreased $0.2 billion to $4.7 billion and imports increased $0.2 billion to $11.3 billion.
  • The deficit with Canada decreased $1.2 billion to $0.4 billion in February. Exports increased $1.2 billion to $26.1 billion and imports increased less than $0.1 billion to $26.4 billion.
  • The deficit with China decreased $0.8 billion to $34.7 billion in February. Exports increased $0.2 billion to $10.7 billion and imports decreased $0.6 billion to $45.4 billion.

Expect more screams from Trump.

Mike "Mish" Shedlock

Comments (10)
No. 1-10
AWC
AWC

But, if budget deficits don't matter, why do trade deficits? Donny?

Gasmire
Gasmire

Not to worry, we are simply spending ourselves rich.

Bam_Man
Bam_Man

LOL...What happened to that 5% first quarter GDP growth? We'll be lucky now to get 2%.

Bam_Man
Bam_Man

And higher interest rates (stronger dollar) will certainly not help.

truthseeker
truthseeker

I was trying to figure out what I would buy from America if I were China other than bonds since we won’t let them buy strategic assets such as technology or oil companies. In the past they have bought some real estate, but if I remember correctly, they paid way too much for some trophy type assets so that didn’t work and they were embarrassed as they absolutely hate to lose face. Obviously we wouldn’t let them buy any of our defense contractors. Then I think I would maybe try to buy a company in the healthcare industry such as Johnson and Johnson. Just the mere rumor of that would probably cause Trump’s blood pressure to shoot up.So China is already upset by all this having maybe several trillion dollars with nothing but bonds to buy, so what would u buy Mish if you were in China’s shoes?