Report a narrowing US trade deficit

Report a narrowing US trade deficit

However, experts warn that after the all-time high reported for this indicator in January, a pick-up in economic growth this quarter could be wiped out by a slowdown in corporate inventory builds.

According to figures released Monday, exports rose 1.2 percent to $157.2 billion, on the back of a 6.3 percent rebound in shipments of consumer goods.

Meanwhile, overseas food sales accelerated 3.6 percent and industrial shipments accelerated 2.6 percent.

By contrast, exports of capital goods and motor vehicles declined. The latter fell 3.4 percent due to production disruptions due to a global semiconductor shortage.

On the other side of the trade balance, imports of goods rose 0.3 percent to $263.7 billion, marked by strong gains in manufactured goods, capital goods and others.

On the other hand, there was a downward trend for motor vehicles (9.9 percent) and food (3.0 percent).

Trade has weighed on gross domestic product growth for six consecutive quarters and may continue to do so this quarter, analysts say.

Although companies replenished inventories in February, the pace was less frantic than the final months of 2021. Wholesale stocks rose 2.1 percent and retail stocks rose 1.1 percent.

However, inventories should be neutral to GDP growth this quarter as they would need to rise at a similar pace to the fourth quarter to contribute to growth.

First quarter GDP growth estimates are mostly below the pace of 1.0 percent.

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