The U.S. trade deficit narrowed as exports surged and imports inched lower. In February, the trade deficit shrank 6.1% to -$122.7B, the first decline in four months.
The U.S. international trade in goods and services, also known as the FT-900, is published monthly by the Bureau of Economic Analysis with data going back to 1992. The monthly reports include revisions that go back several months. This trade balance measures the difference in value between imported and exported goods and services.
Here is an excerpt from the latest report:
The U.S. monthly international trade deficit decreased in February 2025 according to the U.S. Bureau of Economic Analysis and the U.S. Census Bureau. The deficit decreased from $130.7 billion in January (revised) to $122.7 billion in February, as exports increased and imports decreased. The goods deficit decreased $8.8 billion in February to $147.0 billion. The services surplus decreased $0.8 billion in February to $24.3 billion.
This indicator is somewhat volatile, with an 8.7% absolute average monthly change. The latest data point saw a 6.1% month-over-month change. Here is a snapshot that gives a better sense of the extreme volatility of this indicator.
As mentioned earlier, the trade balance measures the difference in value between imported and exported goods and services. In February, imports were flat at $401.1B. Meanwhile exports increased by $7.95 billion (2.9%) to $278.5B. This is the highest level on record and the largest monthly increase since April 2022. Since exports increased more than imports did, the trade deficit decreased.
