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Trade Deficit in U.S. Narrowed in February to Four-Month Low

The Port of Long Beach in Long Beach, California, on Sept. 4, 2016.
Photographer: Tim Rue/Bloomberg
Updated on

The U.S. trade deficit narrowed in February to a four-month low as imports declined and exports improved amid a brighter outlook for global manufacturing, Commerce Department data showed Tuesday.

As the gap shrank in February, global growth prospects were improving, giving U.S. exporters a boost. Exports of goods and services reached the highest level since the end of 2014. The narrowing of the deficit may mean trade will be less of a drag on growth in the first quarter. Fading in dollar strength and a pickup in manufacturing sentiment could be a further boon to trade in the months ahead.