US foreign trade rises by a tad less than expected in February

America's shortfall on trade with the rest of the world widened by slightly less than anticipated in January.

According to the US Department of Commerce, in seasonally adjusted terms the trade deficit in goods and services increased at a month-on-month pace of 1.6% to -$68.3bn.

Economists had penciled in a deficit of -$69bn.

Total exports were 3.4% higher on the month to $257.5bn while imports grew by 3.0% to $325.8bn.

On the goods side of the equation, exports of pharmaceuticals jumped by $2.8bn, those of civilian aircraft by $0.5bn and those of auto vehicles, parts and engines by $1.2bn.

Among imports, purchases of cell phones and other household goods rose by $1.6bn while those of trucks, buses, and special purpose vehicles were up by $1.4bn.

Commenting on the latest trade figures, Matthew Martin, US economist at Oxford Economics, said: "The rebound in trade flows to start the year signals that the economy continues to carry momentum, but we do not expect the strength to be sustained in the months ahead.

"Imports and exports are likely to weaken as consumers and businesses pull back, leading the deficit to move sideways through the first half of the year. As such, we expect trade's impact on GDP to be much more muted than the large positive contributions to growth in the final three quarters of 2022."

-- More to follow --