A jump in imports of consumer goods widened the US trade gap in February to $39.7 billion, a government report showed today. But the closely watched bilateral deficit with China was its lowest in nearly a year.
Stronger US demand boosted imports 1.7% during the month to $182.9 billion. Exports edged only 0.2% higher to $143.2 billion, but that was still the best showing since the depths of the global financial crisis in October 2008. Analysts had expected the trade deficit to widen in February to around $38.5 billion.
The Commerce Department lowered its estimate of January's gap slightly to $37 billion.
US imports of consumer goods such as pharmaceuticals, electronics, toys and clothing and foreign services such as travel were the highest since October 2008. Imports of industrial supplies and materials were the highest since November 2008.
Imports from China fell 7.2% in February to $23.4 billion, the lowest since May 2009, and the US trade gap with the Asian manufacturing giant narrowed to $16.5 billion, the lowest since March 2009.
The slimmer deficit could give US President Barack Obama additional time to persuade China to raise the value of its currency before US lawmakers make good on a threat to pass legislation threatening Beijing with additional US tariffs.
Chinese President Hu Jintao told Obama yesterday that China would not be pushed by external pressure to revalue the yuan and be guided instead by its own domestic needs. China's own monthly data yesterday showed it ran a $7.24 billion trade deficit in March, the first time its balance had been in the red since April 2004.
US imports of crude oil in February were the lowest since February 1999. The average price for imported oil fell nearly $1 to $72.92 a barrel from January, but was up 85.9% from February last year.
