The U.S. trade deficit held close to a record in February as the merchandise shortfall shrank and the surplus in services declined, partly reflecting the impact of broadcast rights for the Olympics.

The February gap in goods and services trade was little changed at $89.2 billion after a record shortfall in January, Commerce Department data showed Tuesday. The median estimate in a Bloomberg survey of economists called for a $88.5 billion February shortfall. The figures aren’t adjusted for prices. 

The value of imports of goods and services rose 1.3% in February to a record $317.8 billion and exports climbed 1.8% to $228.6 billion.

Services imports increased by $2.4 billion to a record $51.6 billion, with about half of the rise coming from the biggest monthly increase in charges for use of intellectual property since 2016. That probably reflects a temporary boost from rights fees to broadcast the winter Olympics, consistent with such spikes in previous years.

Meantime, goods imports also rose, reflecting an increase in industrial supplies such as crude oil and chemicals that more than offset a drop in automobiles. 

Looking ahead, the ripple effects of Russia’s invasion of Ukraine and a potential weakening in European demand for U.S. goods and services may temper U.S. export growth. China’s latest lockdown also highlights the persistence of supply chain challenges. 

On an inflation-adjusted basis, the February merchandise-trade deficit narrowed to $116.3 billion from $117.9 billion. While down from a record in January, the shortfall has grown since the end of last year, indicating net exports will subtract from economic growth in the first quarter. Less inventory accumulation is also seen subtracting from gross domestic product during the period.

The adjusted petroleum trade deficit grew to $8.6 billion, the largest since September.

Digging Deeper

  • The merchandise-trade deficit narrowed to $107.5 billion from a record
  • Travel exports—or spending by visitors to the U.S.—rose to $8.1 billion from $6.9 billion
  • Travel imports, a measure of Americans traveling abroad, rose to $6.4 billion from $5.9 billion
  • The goods-trade deficit with Russia widened to $2.1 billion from $1.6 billion