US goods-trade gap narrows slightly from a record

The U.S. merchandise-trade deficit narrowed slightly in February from a record a month earlier as export growth outpaced that of imports.

The gap decreased to $106.6 billion last month—the second-widest on record—from $107.6 billion in January, Commerce Department data showed Monday. The median estimate in a Bloomberg survey of economists called for a $106.5 billion shortfall. The data aren’t adjusted for inflation.

Exports increased 1.2% to $157.2 billion, led by a jump in consumer goods, foods and feeds, and industrial supplies such as oil. The value of imports rose 0.3%—the smallest since July—to $263.7 billion, restrained by the largest slump in inbound shipments of motor vehicles in a year.

The slowdown in imports may have reflected disruptions of U.S.-Canada trade flows related to Canadian trucker protests. Otherwise, the trade figures underscore both resilient demand and producer interest in adding to materials inventories after the pandemic sparked a myriad of supply shortages and shipping delays last year. China’s latest lockdown underscores lingering logistics challenges for American companies.

The Commerce Department’s report also showed U.S. wholesale inventories increased 2.1%, while retail inventories rose 1.1%.

A more complete February trade picture that includes the balance on services will come into greater focus when the final report is released on April 5.