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The US foreign trade deficit dropped 3% in February to $43.0 billion. The decrease in the deficit is due solely to exports, which increased. Imports remained the same as the previous month.



Exports grew by 0.9% to $186.0 billion. Imports reported no change between January and February at $228.9 billion both months. The reduction in the deficit for February was caused primarily by a reduction in the petroleum deficit, which dropped $3.1 billion to $21.2 billion. The goods deficit also declined and the services surplus increased, also contributing to a lower deficit.

The real goods deficit, which is important for the calculation of GDP, shrank 1.5% to $47.4 billion.

Read the Census report.

The U.S. trade deficit widened by $1.9 billion in October, reaching $42.2 billion. The trade deficit has tracked in a narrow range, from $40 to $43 billion, since June. Both exports and imports fell in October, with the decline in exports outpacing the fall in imports. It is not surprising that both imports and exports fell in October, as Hurricane Sandy shut down many ports in the Northeast.



Exports fell 3.6% in October, reaching $180.5 billion, their lowest level since February. Imports fell in February as well, but by a more modest 2.1%, reaching $222.8 billion.

The real good’s deficit, which has a direct impact on GDP, shrank slightly in October to $46.2 billion. The European crisis has widened the U.S trade gap, as Europeans import fewer goods due to slowing economic activity.

Read the Census report.