U.S. Trade Deficit Narrows in February Boosting Economic Outlook

In February, the U.S. trade deficit in goods decreased as exports rose. This development may alleviate concerns about a sharp economic slowdown in Q1. The deficit fell by 4.9% to $147.9 billion, and exports increased by $7 billion, which could positively impact GDP forecasts.

In February, the U.S. trade deficit in goods witnessed a contraction, thanks to a surge in exports. This change is likely to mitigate fears of significant economic deceleration in the first quarter, according to the Commerce Department's Census Bureau.

The trade gap narrowed by 4.9%, settling at $147.9 billion, following an expansion in January that had led economists to downgrade GDP growth predictions to under 1.5% annually. The previous quarter saw the economy expand at a 2.4% rate.

Goods exports experienced a $7 billion increase to reach $178.6 billion, while imports saw a slight decrease of $0.6 billion to settle at $326.5 billion. These developments present a more optimistic economic picture.

(With inputs from agencies.)