The U.S. trade deficit unexpectedly rose for a second straight month in February as a big jump in imports of foreign-made cars offset the first decline in oil imports in a year.
The Commerce Department reported yesterday that the trade deficit rose 5.7 percent in February to $62.3 billion, the highest level since November. Analysts had forecast the deficit would decline, suspecting a severe economic slowdown in the United States would cut demand for imports.
However, imports of goods and services shot up 3.1 percent to an all-time high of $213.7 billion, reflecting a big surge in imports of foreign cars. Exports also set a record, rising by 2 percent to $151.4 billion, reflecting strong gains in the sale of American-made heavy machinery, computers and farm goods.
The number of newly laid off workers filing claims for unemployment benefits fell sharply last week after having hit the highest level in more than two years in the previous week. The Labor Department said applications for jobless benefits totaled 357,000 last week, down by 53,000 from the previous week, but the four-week average moved to the highest level since October 2005.
Meanwhile, the nation’s retailers reported mixed results last month. Wal-Mart and Costco Wholesale Corp. were among the best performers. Other retailers reported that their sales suffered from the weak economy and an early Easter that dampened clothing sales.
On Wall Street, investors were generally encouraged by the batch of economic reports and pushed stocks higher after two days of losses.
The rise in the trade deficit gave ammunition to critics who contend that the Bush administration’s policies have helped destroy more than 3 million manufacturing jobs since January 2001, as the trade deficit set records for five consecutive years.
“Wages are falling and the middle class is shrinking because of trade deficits,” James P. Hoffa, president of the International Brotherhood of Teamsters, said yesterday at the end of a three-day “Working Class Convoy for Change” in Pennsylvania.
Mr. Hoffa, who supports the presidential candidacy of Sen. Barack Obama, Illinois Democrat, was touring Pennsylvania ahead of that state’s April 22 presidential primary to highlight job losses and financial devastation that his union attributes to unfair foreign competition.
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