- Institute for Supply Management
The US trade balance ballooned in February to the highest level un six months as a surge in imports exceeded a slight pickup in overseas shipments. The trade shortfall widened 2.6% to $47.1 billion from a revised $45.9 billion in January, the Commerce Department said. In February, exports of goods climbed 1.6% to $118.6 billion, while overall exports of goods and services rose 1.0% to $178.1 billion. The increase in exports was the first in five months and reflects the struggle manufacturers face due to a strong US Dollar, which makes US-made goods less competitive in a weaker global marketplace. At the same time, imports climbed 1.3% to $225.1 billion, recording the biggest monthly increase in a year. The report joined data on consumer and business spending in suggesting that the US economic growth slowed further in the first quarter after moderating to a 1.4% annualized rate in the final three months of 2015. Growth estimates for the first quarter are currently below a 1% pace.
A separate report showed US services sector reported a higher economic activity in March. An index of nonmanufacturing activity increased to 54.5 in March from 53.4 the preceding month, the Institute for Supply Management reported. Nonmanufacturing industries account for more than 80% of the US economy. The sector has grown for six years, though its expansion cooled earlier this winter.
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