Trade Deficit Increases for Third Straight Month

The monthly U.S. trade deficit in goods and services rose 2.8 percent in February 2023 as both imports and exports decreased. A MarketWatch article noted that, two months into the new year, the U.S. “is on track to break a string of three straight years of rising and record [trade] deficits, but not for reasons conducive to a healthy economy.”

Imports fell 1.5 percent from January to $321.7 billion. Imports of goods were down 2.2 percent to $262.2 billion, with decreases of $1.5 billion for cell phones and other household goods, $1.5 billion for passenger cars, and $1.1 billion for trucks, buses, and special purpose vehicles. Services imports gained 1.4 percent to $59.5 billion.

Exports declined 2.7 percent in February to $251.2 billion. Exports of goods fell 4.8 percent to $169.3 billion, with decreases of $2.3 billion for drugs, $1.5 billion for natural gas, and $1.2 billion for passenger cars. Services exports were up 2.1 percent to $82.0 billion.

With exports and imports both down, the monthly U.S. trade deficit increased from $68.7 billion in January to $70.5 billion in February. The deficit in goods trade was up 2.8 percent to $93.0 billion while the services trade surplus rose 3.7 percent to $22.4 billion.