Economist report that the economy is doing better than expected and the trade deficit seems shrinking, and this only after a couple of months with President Trump at the helm.
The U.S. trade deficit shrank by nearly 10 percent in February, hinting that the economy may be growing at a faster pace than many economists expect.
The deficit fell to a seasonally adjusted $43.6 billion, lower than the $44.6 billion economists surveyed by the Wall Street Journal had expected. Exports rose 0.2 percent to $192.9 billion in February while imports declined 1.8 percent to $236.4 billion, the Department of Commerce said Tuesday.
The Trump administration has made the reduction of the trade deficit one of its central economic goals, describing our persistently large trade deficits as both an economic and security risk. February’s decline makes that goal easier to achieve.
Exports were boosted by improving economic conditions around the globe, as well as a rise in the value of several major currencies against the dollar. A weaker dollar makes American-made goods less expensive for foreign buyers. Exports of goods hit their highest level on record, after adjusting for inflation. Exports of services also rose. Overall, exports are 7.2 percent higher than they were a year ago.
Imports declined as U.S. consumers imported fewer consumer goods such as cell phones and autos from abroad.
One of Trump’s biggest promises was to stop the flow of jobs and capital leaving the United States and it seems he is upholding his promise!
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