U.S. Trade Deficit Rises to a Six-Month High of $47.1 Billion

6 Apr 2016   Economy, Prices

America’s trade deficit widened in February to a six-month high as an increase in imports exceeded a more modest pickup in shipments overseas. The gap increased 2.6 percent to $47.1 billion from a revised $45.9 billion in January, the Commerce Department reported Tuesday. The median forecast in a Bloomberg survey called for a $46.2 billion February shortfall. The gain in exports was just the first in five months and highlights the squeeze on American manufacturers from a stronger dollar that’s made U.S.-made goods less attractive in a weaker global marketplace. A third straight increase in the deficit indicates trade will weigh on first-quarter growth. “American economic demand is stronger than abroad,” said David Sloan, senior economist at 4Cast Inc. in New York. Still-weak overseas growth in the months to come will mean a “slow and steady gradual increase in the deficit, which will be a modest drag on growth […]

Comments are closed.