February Trade Deficit May Narrow

The Commerce Department will release the February trade report Tuesday, and economists expect the U.S. trade deficit probably hovered close to a record. The international trade shortfall in goods and services probably narrowed to $16.6 billion after widening in January to a record $17 billion, analysts said. For goods and services trade combined, the January shortfall was the largest since the government began compiling that figure monthly starting in January 1992. For goods alone, January’s deficit of $22.3 billion was the largest on record. The strong economy and low prices are causing imports to rocket past exports, said Richard Yamarone, an economist at Argus Research Corp. in New York. “Americans like to spend money,” Yamarone said. Moreover, sluggish economies in Asia, Europe, and Latin American are punishing exporters.