The U.S. trade deficit shrunk down nearly 10% in February which is a good sign that the economy may be growing at a fast pace.
President Trump has made it one of his main goals to reduce the trade deficit because of it being an economic and security risk. The 10% cut we saw in February is a great sign that things are moving a long as planned. President Trump is a man of his word.
The deficit fell to a seasonally adjusted $43.6 billion, lower than the $44.6 billion economists surveyed by the Wall Street Journal had expected. Exports rose 0.2 percent to $192.9 billion in February while imports declined 1.8 percent to $236.4 billion, the Department of Commerce said Tuesday.
Exports were boosted by improving economic conditions around the globe, as well as a rise in the value of several major currencies against the dollar. A weaker dollar makes American-made goods less expensive for foreign buyers. Exports of goods hit their highest level on record, after adjusting for inflation. Exports of services also rose. Overall, exports are 7.2 percent higher than they were a year ago.
Imports declined as U.S. consumers imported fewer consumer goods such as cell phones and autos from abroad.
A lower trade deficit is just the thing we need to boost the economy and it’s a good sign that Spring will have a lot of growth with manufacturers kicking into high gear.