The US trade gap narrowed slightly less-than-expected in February, following a surge in the previous month.
The US trade deficit of goods and services fell to $45.8 billion in February compared with a deficit of $47 billion in November, the Commerce Department said on Tuesday.Markets had expected the US trade deficit to decline to $45.7 billion in February.
While the exports from the US fell by $2.4 billion to $165.1 billion in February month-on-month, imports were down by $3.6 billion to $ 214.5 billion. However, the US trade deficit in February was $6 billion higher compared with the same month last year.
Exports of automotive vehicles & components dropped by $1 billion in February, leading the drop in overall US exports in the month. Also, imports of automotive products went down by $2.3 billion.
However, exports of services remained virtually unchanged in February. Year-on-year, exports of services went up by $2.9 billion, while imports recorded an increase of $1.1 billion.
Also, the US trade deficit with China, the world's largest trade imbalance between two countries, narrowed to $18.8 billion in February from $23.3 billion in January, while deficit with European Union (EU) increased to $6.9 billion, up from $5.6 billion.
Last Friday, China reported a trade deficit in the first quarter this year, its first in six years during January-March period.