The U.S. trade deficit widened 4.8 percent to a record $ 71.1 billion in February, the Department of Commerce said Wednesday.
Economists had predicted a trade gap of $ 70.4 billion. The January gap was revised down from $ 68.2 billion to $ 67.8 billion.
Both imports and exports fell during the month, but the pace of decline in exports was much faster, widening the deficit. Imports fell seven tenths of a percentage point, but are still close to record highs. Exports fell 2.6 percent.
Trade in goods increased by $ 2.8 billion to $ 88 billion. The service surplus fell $ 500,000 million to $ 1
U.S. exports have been hurt by the passing of lockdowns and declining economies across the globe, especially in Europe. U.S. spending has been boosted by the strength of the U.S. economy, improved unemployment benefits and incentive payments – and much of that spending is leaking to foreign producers through imports.
The record trade deficit means that a large proportion of Americans ‘income is converted to foreigners’ income. It reduces U.S. household incomes and deducts from gross domestic product.
The record high trade deficits are expected to continue in the short term as the US economy continues to grow faster than our trading partners’ economies. Economists predict the U.S. economy will grow by 6 percent or more this year.
Year to date, the deficit on goods and services is an increase of $ 56.5 billion. Or 68.6 percent from the same period in 2020. In a year to date, exports fell $ 36.2 billion. Or 8.7 percent. Imports rose $ 20.3 billion, or 4.1 percent. The comparisons with last year include the beginning of the pandemic that weighed heavily on international trade.
Imports of motor vehicles and parts fell by DKK 3.4 billion. $, Including a decrease of 1.8 billion. Dollars in passenger cars. Car production has been hurt all over the world due to lack of semiconductors. Exports of vehicles and parts fell by $ 700,000 million.
Imports of consumer goods fell by $ 2.7 billion. Exports of consumer goods fell by $ 90 million.
Imports of industrial supplies and materials increased by $ 3.5 billion. Imports of oil increased by 1 billion. Dollar.
The deficit with China increased by $ 3.1 billion to $ 30.3 billion in February. Exports fell by $ 4.5 billion. To $ 10.4 billion, and imports fell by $ 1.5 billion. To $ 40.6 billion.
Exports of U.S. services, which typically run in surplus and easily offset the long-term deficit in goods, have fallen during the pandemic, mainly due to a decline in tourism. Travel services, for example, fell by $ 100 million in February.