Trade Deficit Better Than Estimates

- The Trade Deficit for February came in at -$65.7B versus estimates of -$67.5B and -$68.6B in January.

BOTTOM LINE: The US trade deficit shrank more than expected in February, led by a decline in Chinese imports, Bloomberg reported. The deficit with China narrowed to $13.8 billion in February, the smallest since March 2005. US exports were the second-highest on record. I expect the deficit to only improve modestly over the coming months.