Retailer Daily

Trade Deficit Jumps 7.3% - Update

The U.S. trade deficit in goods and services rose 7.3% in February 2010, from a revised $37 billion to $39.7 billion. This effectively wipes out a 7.3% reduction in the deficit which occurred in January 2010. The deficit has been displaying a seesaw pattern since summer 2009, growing 4% in June and 14% in July and declining 3.7% in August, before growing 18.5 in September, falling 7.8% in October, and rising 9.6% in both November and December before its 7.3% spurt in January 2010. According to the Bureau of Economic Analysis, total exports rose 0.2%, from $142.9 billion to $150.2 billion. Total imports rose 1.7%, from $176.8 billion to $179.8 billion. The goods deficit increased 3.8%, from $49.4 billion to $51.3 billion. Exports of goods rose 0.1%, from $98.4 billion to $98.5 billion. Imports of goods rose 1.3%, from $147.8 billion to $149.8 billion.

Consumer Goods Imports Rise Faster than Exports

Between January and February 2010, increased occurred in exports of capital goods ($400 million), automotive vehicles, parts, and engines and industrial supplies and materials ($200 million each). In the same time period, decreases occurred in exports of foods, feeds and beverages ($500 million) and consumer goods ($200 million). Meanwhile, increases occurred in imports of consumer goods ($1.1 billion), industrial supplies and materials ($1 billion), other goods and capital goods ($400 million each). Decreases occurred in imports of automotive vehicles, parts, and engines ($800 million) and foods, feeds, and beverages ($100 million).

Moving Averages Go Up

For the three months ending in February 2010, exports of goods and services averaged $143.1 billion, while imports of goods and services averaged $181.9 billion, resulting in an average trade deficit of $38.9 billion. For the three months ending in January 2010, the average trade deficit was $37.7 billion, reflecting average exports of $141.5 billion and average imports of $179.1 billion.

Deficit Grows Almost 50% on Annual Basis

Compared with February 2009, February 2010 saw the goods and services deficit increase 49.8% from $26.5 billion. Exports were up $17.9 billion, or 14.3%, and imports were up $31.1 billion, or 20.5%.

Retail Container Traffic Rises 20% Compared to Feb. ‘09

The significant 20.5% increase in February 2010 imports as compared to February 2009 imports is reflected in retail container traffic figures released by the National Retail Federation (NRF). U.S. ports handled 1.01 million Twenty-foot Equivalent Units (TEUs) in February 2010, down 6% from January 2010 as shipping hit its traditional slow point for the year, but up 20% from the unusually low numbers seen during February 2009. It was also the third month in a row to show a year-over-year improvement after December broke a 28-month streak of year-over-year monthly declines. One TEU is one 20-foot cargo container or its equivalent.