U.S. Trade Gap Narrowed in February as Coronavirus Spread

By Harriet Torry and David Harrison 

WASHINGTON -- The U.S. trade deficit in goods narrowed sharply in February, as the spread of the novel coronavirus disrupted international trade flows.

The foreign-trade gap in goods and services contracted 12.2% from the prior month to a seasonally adjusted $39.93 billion in February, the Commerce Department said Thursday.

That was the smallest deficit since September 2016. Economists surveyed by The Wall Street Journal had expected a trade deficit of $40.0 billion.

Imports decreased 2.5% in February. Exports, meanwhile, fell 0.4% to $207.54 billion from January's $208.31 billion. Exports of consumer goods like pharmaceuticals, travel, transport and financial services fell.

Trade has been volatile in recent months as the coronavirus pandemic has shuttered factories and businesses around the world and disrupted supply chains. U.S. Exports have been hurt by the halt in production of Boeing Co.'s troubled 737 MAX jetliner since January and a drop in oil prices.

As February began, the U.S. had reported only seven coronavirus cases, and started to impose entry restrictions on foreign nationals and quarantines on Americans returning from the Chinese province at the center of the virus outbreak. By the end of February, there were 64 confirmed cases in the U.S, and airlines were suspending flights.

Write to Harriet Torry at [e-mail] and David Harrison at [e-mail]

(END) Dow Jones Newswires

April 02, 2020 08:59 ET (12:59 GMT)

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