The trade deficit widened 2.7% in February to a four-month high of $70.5 billion and pointed to more stress on the U.S. economy.
The trade gap rose from $68.7 billion in January and was slightly above Wall Street forecasts.
Both imports and exports fell in February, reflecting weaker growth in the U.S. and abroad.
Key details: Imports fell 1.5% to $321.7 billion in February to extend a recent string of declines.
Part of the drop reflects lower oil prices, but Americans have also trimmed spending in response to rising interest rates and a slower economy.
A further decline in imports would be a potential warning sign of worse to come.
Exports slid an even sharper 2.7% to $251.2 billion. A weaker global economy could further sap demand for American goods and services.
Big picture: The U.S. is on track to break a string of three straight years of rising and record deficits, but not for reasons conducive to a healthy economy.
Market reaction: The Dow Jones Industrial Average
DJIA,
and S&P 500
SPX,
were set to slightly lower in Wednesday trades.
This post was originally published on Market Watch
