Trade deficit widens for second consecutive month

The U.S. trade deficit widened in February, increasing 1.9% to $68.9 billion, according to the Commerce Department’s Bureau of Economic Analysis, as a record-high increase in exports offset surging imports.

January’s data was revised to adjust the trade gap increasing to $67.6 billion, up from the previously reported $67.4 billion, making February the second month in a row that the deficit widened. When adjusted for inflation, the the trade deficit on goods rose 1.2% to $87 billion.

After remaining neutral for for two quarters, trade added a 0.25 percentage point to the economy’s 3.4% annualized growth rates. First-quarter growth-rate estimates are as high as a 2.8% pace currently.

Exports increased 2.3% to a record-high of $263 billion, while goods exports rose to $176.7 billion. Exports in industrial materials and supplies, food, services and capital goods also went up.