US trade deficit widens to $62.3bn

The US trade deficit widened unexpectedly in February as imports of consumer and other goods set a record and grew faster than…

The US trade deficit widened unexpectedly in February as imports of consumer and other goods set a record and grew faster than exports, which hit a record for the 12th consecutive month, a US government report showed today.

The monthly deficit widened 5.7 per cent to $62.3 billion, from an upwardly revised estimate of $59 billion for January. Wall Street analysts had expected the gap to narrow to $57.5 billion.

Despite slow US economic growth that has spawned fears of a recession, imports of goods and services rose 3.1 per cent to $213.7 billion, the Commerce Department report showed.

In a broad-based sign of renewed US demand, records were also set in individual categories for consumer goods, capital goods, industrial supplies and materials and food, feed and beverages.

Meanwhile, US petroleum imports declined in February to $37.7 billion after 11 consecutive monthly increases.