MercoPress. South Atlantic News Agency

US trade deficit shrank in February but with overall trade falling

Automotive imports fell by 2.3bn

The US trade deficit shrank in February as imports fell more than exports, according to a government report that suggested a slowdown in global demand. The monthly trade gap totalled 45.8 billion US dollars, down from an upwardly revised estimate of 47 billion in January.

US exports, after rising in each of the previous five months, fell 1.4% in February to 165.1 billion. That was led by a 1 billion drop in auto and auto parts exports, with smaller declines for other major categories. Services exports rose just enough to set a record.

US imports, which like US exports have roared back from the depths of the global financial crisis in 2008 and 2009, fell a larger 1.7% in February to 210.9 billion.

Automotive imports fell 2.3 billion, followed by a 2.1 billion drop in capital goods. Imports of consumer goods increased 2.3 billion in February.

The average price for imported oil rose for the fifth straight month in February to 87.17 US dollars per barrel, the highest since October 2008. But that was tempered by the lowest quantity of crude oil imports since February 1999.

The closely watched US trade deficit with China shrank 19% in February to 18.8 billion USD, as US imports from that country fell and US exports to the Asian manufacturing giant rose.