Goods Trade Deficit Deeper Than Consensus

The nation's trade deficit in goods failed to improve in February, at a very steep $75.4 billion which is nearly $1.5 billion deeper than Econoday's consensus and little changed from January's revised $75.3 billion. Imports rose 1.4 percent in the month with foods rising sharply along with imports of capital goods and industrial supplies as well. Imports of vehicles rose sizably but not consumer goods which posted only a small gain.

Exports are actually strong in this report, up 2.2 percent with gains centered in vehicles, which are usually a weak category, and also capital goods which is the nation's strength. Exports of consumer goods, a major weakness, declined sharply after bouncing higher in January.

Based on two months of data, net exports won't be helping first-quarter GDP though the negative pull may be offset by a rising inventory build, data for which were also released this morning.