February trade deficit increases to $39.7 billion

[The Northerner]

Source: Associated Press

WASHINGTON – The U.S. trade deficit widened more than expected in February as a small gain in exports to the highest level in 16 months was offset by a bigger jump in imports, reflecting increased demand for consumer goods from televisions to clothing.

The wider deficit was a sign of a rebounding U.S. economy. Economists expect the trade deficit to rise this year but hope that expanding exports will continue to lift the fortunes of American manufacturing companies.

The Commerce Department reported Tuesday that the deficit for February increased 7.4 percent to $39.7 billion. That was larger than the $38.5 billion deficit economists had expected. Exports edged up 0.2 percent while imports jumped 1.7 percent.

The politically sensitive deficit with China fell to $16.5 billion in February, the lowest level in 11 months, but was still the biggest trade imbalance the United States has with any country. The slight improvement was not likely to lessen pressure on the Obama administration to impose trade sanctions on China unless the country begins to allow its currency to start rising again in value against the dollar.

Read more: http://news.yahoo.com/s/ap/20100413/ap_on_bi_go_ec_fi/us_economy

[Po_d Mainiac]

1. So what? Intel had a good quarter. Markets will be happy and

we'll forget that Alcoa sucked rocks. What are Alcoa products used for? Big shit like engine blocks and transmission casings.

:some: :sarcasm:

Most of what we used to export (last 20 years) was DEBT, but you can't piss on peoples shoes too many times, or they move their feet...Doubt the statement? Look up the facts. When shrub first stated "Our exports are strong" I did.

[Rapier09]

4. Trade deficits are a matter of Japan/China playing games with their currency

Not to mention Germany along with Russia's export of oil.

It is a wonder,it isn't any higher.

[pampango]

2. "Export growth was dominated by manufacturing, while imports were driven by consumption."

http://news.bbc.co.uk/2/hi/business/8618175.stm

"At $182.9bn, imports were up 20.5% on the same month a year ago, while exports of $143.2bn were up only 14.3%.

The trade figures confirm the trend of resurgent imports outpacing the rebound in exports as the US economy recovers from recession."

The only good news was that manufacturing exports are growing.

[DallasNE]

3. A Recovering Economy

Results in more crude oil imports. When there is also an increase in the price of oil the trade imbalance grows. The DU report fails to mention the obvious source of the increase, which is oil. On balance, this is a good report.

[OhioChick]

5. K&R n/t