The deficit fell to $43.6 billion in February, 9.6 percent below January’s deficit of $48.2 billion, the Commerce Department reported. Exports rose a small 0.2 percent to $192.9 billion. Imports dropped 1.8 percent to $236.4 billion as the flow of Chinese goods dropped by $8.6 billion, led by a reduction cell phone imports.
The trade deficit with China slipped in February to $23 billion, 26.6 percent below the January total; but still too high. And the reduction may be technical due to the Chinese New Year and not part of a trend: YET.
The small rise in exports in February was led by U.S.-made autos and autos parts, which climbed 1.5 percent to the highest level since July 2014. Exports of petroleum products were up 8.6 percent. Those gains helped offset declines in exports of commercial airplanes, farm products and industrial engines.
The increase in exports of goods was driven by consumer goods which increased $.7 billion to $17.1 billion and military and other goods which increased $.5 billion to $4.9 billion. The decrease in imports of goods were driven by consumer goods which decreased $3.1 billion to $49.0 billion and automotive vehicles, parts and engines which decreased $2.6 billion to $29.1 billion. There was a services surplus for the month of $21.4 billion.