U.S. Imports, Exports Fell in February, Pointing to Softer Trade Demand

By David Harrison

U.S. trade with the rest of the world weakened in February as both imports and exports shrank, widening the trade deficit.

Imports were down 1.5% in February, to a seasonally adjusted $321.7 billion, reflecting lower shipments of consumer goods and automobiles.

Exports fell 2.7%, to $251.2 billion, as sales of industrial supplies and materials, automobiles and consumer goods and capital goods such as aircraft decreased.

As a result, the trade gap grew 2.7% in February, to $70.5 billion.

The figures cover a period before recent U.S. banking-sector turmoil.

The trade data add to signs that consumers worldwide may be starting to pull back due to higher interest rates from global central banks, which have increased borrowing costs to combat high inflation.

U.S. personal spending on goods was flat in February from January, the Commerce Department said Friday. Consumer prices were up 6% in February from a year earlier, the Labor Department said last month, down from recent highs.

Many economists expect the U.S. economy will cool later this year, with some predicting a recession.

Write to David Harrison at [e-mail]

(END) Dow Jones Newswires

04-05-23 0903ET