Sharjah24 – Reuters: The U.S. trade deficit held at a record high in February as both exports and imports surged, indicating that trade remained a drag on economic growth in the first quarter.
The report from the Commerce Department on Tuesday added to recent data that showed a moderation in consumer and business spending in suggesting the economy slowed considerably last quarter amid high inflation triggered by shortages.
The trade deficit dipped 0.1% to $89.2 billion in February. Data for December was revised to show a $89.2 billion shortfall, still an all-time high, instead of the previously reported $89.7 billion. Economists polled by Reuters had forecast a $88.5 billion deficit.
Exports of goods and services shot up 1.8% to a record $228.6 billion in February. They were boosted by a 1.8% jump in goods exports, which also hit an all-time high. Petroleum exports hit a record high of $20.3 billion. The increase was likely driven by higher oil prices following Russia's invasion of Ukraine.
Exports of consumer goods exports rose $1.3 billion, with pharmaceutical preparations increasing $1.5 billion. But capital goods exports dropped $0.7 billion, pulled down by a $1.0 billion decline in civilian aircraft.
Exports to Ukraine hit a record high, likely reflecting shipments of military equipment after Russia launched its invasion on Feb. 24.
Exports of services increased $1.3 billion to $69.9 billion, lifted by a $1.2 billion rise in travel amid a significant decline in COVID-19 infections.
Imports of goods and services jumped 1.3% to an all-time high of $317.8 billion. Imports of goods gained 0.6% to a record $266.2 billion. Imports of industrial supplies and materials rose $3.4 billion to the highest level since June 2011.
They were fueled by a $1.9 billion surge in crude oil, which averaged $76.37 per barrel, the highest since November 2014.
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