Source: Bloomberg
Source: Bloomberg
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The US first has to import in order to export

An increase in imports in February is a good sign for the US, despite the appearance of a worsening trade deficit.

March 7, 2017 9:54 PM (UTC+8)

The US trade deficit for February was the highest since March 2012 due to higher imports of capital equipment, consumer goods and motor vehicles. This is a sign of US economic strength: in order to increase industrial capacity, the US first has to invest in capital goods, and America’s shrunken capital goods producers can’t meet demand.