by Calculated Risk on 4/05/2013 10:55:00 AM
Friday, April 05, 2013
Trade Deficit declined in February to $43 Billion
Note: I'll have more on the employment report soon.
The Department of Commerce reported:
[T]otal February exports of $186.0 billion and imports of $228.9 billion resulted in a goods and services deficit of $43.0 billion, down from $44.5 billion in January, revised. February exports were $1.6 billion more than January exports of $184.4 billion. February imports were $0.1 billion more than January imports of $228.9 billion.The trade deficit was below the consensus forecast of $44.8 billion.
The first graph shows the monthly U.S. exports and imports in dollars through January 2013.
![U.S. Trade Exports Imports](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjtep1xYQWRB9YSxwaZKtpNq3NFdnhTTMRWSNQdmdoyPQsGdZWD53DNqOYlKATAb6wG_hlvLthJVAAG7GD2c5XFUG5XCNZVsrPEFpenOvMlHsk6Rp9As9Z58mN3myGNtv_2jOZ3wA/s320/TradeFeb2013.jpg)
Exports increased in February, and imports were essentially flat, so the deficit declined.
Exports are 12% above the pre-recession peak and up 3.2% compared to February 2012; imports are slightly below the pre-recession peak, and up 2% compared to February 2012.
The second graph shows the U.S. trade deficit, with and without petroleum, through February.
![U.S. Trade Deficit](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiIrDJK90PLH1YGCks6G8SdthFImji9V88c6Fx6-BuHLHov0QJz_0MHjuW-B4GfFlAAZyNjl046nr7m7DT1Ki-D5QwXYSyte98-SCi3yHdo3DIYo_MCmyfmwEr69ASnqsedhl5sww/s320/TradeDeficitFeb2013.jpg)
The decrease in the trade deficit in February was mostly due to a decrease in the volume of petroleum imports.
Oil averaged $95.96 per barrel in February, up from $94.08 in January, but down from $103.63 in February 2012.
The trade deficit with China increased to $23.4 billion in February, up from $19.4 billion in February 2012. Most of the trade deficit is still due to oil and China.
The trade deficit with the euro area was $8.1 billion in January, up from $5.8 billion in February 2012. This is another sign of weakness in the euro area.