U.S. Trade Deficit Rebounds

123jump.com Staff
13 Apr, 2010
New York City

U.S. trade deficit rebounds in February with the bounce in the economy. Imports surpass the exports in the month and the U.S. recorded its largest deficit with China, $16.5 billion.

[R]9:55 AM New York – U.S. trade deficit rebounds in February with the bounce in the economy. Imports surpass the exports in the month and the U.S. recorded its largest deficit with China, $16.5 billion.[/R]

U.S. trade deficit in February increased to $39.7 billion from $37.0 billion in January. February exports rose by $0.3 billion and imports increased by $3.0 billion. The goods deficit increased by $1.9 billion and service surplus decreased to $0.8 billion.

Exports increased 0.2% and imports rose 1.7% in the month from January according to the latest data released by the Commerce Department.

The U.S. recorded the largest deficit among any nations with China to $16.5 billion.

Deficit with the European Union soared nearly 90% to $5.3 billion and with Japan increased to $4.3 billion, an increase of 28.3%.

The annualized deficit in the first two months is running at $460 billion, an increase of 21.5% from $378.6 billion in 2009.

Last week, China reported its first monthly trade deficit in six years in March with the world o $7.24 billion. China has been pursuing more balanced growth as it faces rising criticism from the U.S. to develop a more balanced growth.

China is under severe pressure from the U.S. lawmakers to let its currency rise and curtail its deficit with the U.S. However, U.S. has run annual deficits with the world for more than four decades in a row.

In a separate report from the United States Department of Labor, March import price index increased 0.7% after 0.2% decline in fuel prices. The index for export prices increased 0.7% after decreasing 0.4% in each of last three months.

The UK trade deficit in goods and services decreased to £2.1 billion in February, compared to deficit of £3.9 billion in January. The deficit on trade in goods decreased to £6.3 billion in February compared to deficit of £8.1 billion in January.