On Thursday, reports emerged announcing that the U.S. trade deficit fell in February to its lowest point in four months. According to the Commerce Department, the trade deficit decreased 12.4 percent to $46 billion in February, down from $52.5 billion in January.
Some predict that the narrower deficit could lead economists to revise their growth estimates for the 1st quarter of 2012. Most economists have predicted that growth slowed in the January-March quarter to an annual rate of less than 2.5 percent, down from 3 percent at the end of last year.
“February’s U.S. trade data are better than expected and suggest that net trade wasn’t as large a drag on growth in the first quarter as previously looked likely,” said Paul Dales, senior U.S. economist at Capital Economics.
American exports rose to an all-time high, while imports dropped. Exports edged up 0.1 percent to a record $181.2 billion. U.S. businesses sold more goods in Europe, China, and other parts of the world. Imports dropped 2.7 percent to $227.2 billion, after hitting a record high in January. Oil imports fell, as did imports of foreign cars and machinery.
For February, imports of petroleum products dropped to $37.3 billion, the lowest level since October. The average price for a barrel of imported crude oil was $103.63 in February, down only slightly from $103.81 in January. Crude oil prices around the world have risen from around $75 last October to a peak of $110 in March.
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