The February 2008 trade deficit increased to $62.3 billion - - its highest total since November 2007 - - and an increase over January 2008's revised total of $59.0 billion.
Economists surveyed by Bloomberg News had expected the February 2008 trade deficit to be $57.5 billion.
Excluding services, imports increased 3.5% to $180.2 billion, while exports rose 2.4% to $104.7 billion.
Exports shine
On the bright side, U.S. exports rose for the 12th consecutive month, representing one of the few solidly-performing dimensions of the otherwise anemic U.S. economy. Economists say the weaker U.S. dollar is assisting export sales, as it makes U.S. goods less expensive abroad. On Thursday, the dollar also fell to a record low $1.59 versus the euro.
Another bright point: the U.S. petroleum deficit decreased to $32.5 billion, its first decline in eight months. A decline in the quantity of oil imported offset a record oil price of $84.76 per barrel.
Imports weigh
On the downside: U.S. imports increased to a record $213.7 billion in February 2008, on purchases of foreign-made autos, industrial machines, and pharmaceuticals.
Economist David H. Wang told BloggingStocks Thursday that although imports rose in February 2008, that trend should not continue, given the pullback by the U.S. consumer.
"Look at the February 2008 import stat as a bit of an aberration," Wang said. "With the consumer pulling back due to economic uncertainty in the U.S. imports will moderate in the months ahead."
Wang said the other positive dimensions of the report - - lower oil imports and increased exports - - bode well for the U.S. trade deficit, longer-term.
"It appears higher oil prices are finally beginning to check oil demand, and we imported less oil in February. If that continues, that will go a long way toward reducing our trade deficit," Wang said. "Our exports are also doing well, especially the agriculture sector. Exports will help lead the economic recovery."
Economists generally prefer that a nation run a trade surplus as opposed to a trade deficit, as it usually implies that a nation's goods are competitive on the world stage, it's citizens are not consuming too much, and that it's amassing capital for future investment and economic goals.
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