U.S. trade deficit fell in February to $46 billion

The U.S. trade deficit fell in February to its lowest point in four months. American exports rose to an all-time high while imports dropped. The narrower deficit could lead economists to revise upward their growth estimates for the January-March quarter. The Commerce Department has reported this morning that the trade deficit decreased 12.4% to $46 billion in February, down from $52.5 billion in January. Exports edged up 0.1% to a record $181.2 billion as U.S. businesses sold more goods in Europe, China and other parts of the world. Imports dropped 2.7% to $227.2 billion, after hitting a record high in January. Oil imports fell, as did imports of foreign cars and machinery. A narrower trade deficit will drag less on growth because it means businesses sold more American-made goods overseas at the same time as U.S. consumers bought fewer foreign-made products. Most economists expect growth slowed in the January-March quarter to an annual rate of less than 2.5%, down from 3% at the end of last year. Get all the specifics of this morning’s Commerce report in a complete story from The Associated Press here.