U.S. Trade Deficit Narrows to $122.7 Billion in February

The U.S. trade deficit narrowed to $122.7 billion in February from a record high of $130.7 billion in January, slightly exceeding economists' expectations of $123.5 billion. The decrease was largely driven by a 2.9% increase in exports, reaching $278.5 billion, particularly in nonmonetary gold, capital goods, and automotive products. Meanwhile, imports remained virtually unchanged at $401.1 billion, as a drop in industrial supplies counterbalanced increases in consumer goods and capital goods. Despite the overall improvement, the trade deficit still indicates that imports continue to exceed exports, raising concerns about the U.S. economic competitiveness. Analysts note the implications of these trade figures on the U.S. dollar, with the slight miss against forecasts potentially exerting bearish pressure. Ongoing monitoring of these trends will be crucial for understanding the future dynamics of U.S. trade policy and economic health.