US trade deficit rises to near 9½-year high

The U.S. trade deficit increased to a near 9½-year high in February as both exports and imports rose to record highs, but the shortfall with China narrowed sharply.

The Commerce Department said on Thursday the trade gap rose 1.6 percent to $57.6 billion. That was the highest level since October 2008 and followed a slightly downwardly revised $56.7 billion shortfall in January.

The deficit has now risen for six straight months. The goods trade deficit was the highest since July 2008 and the surplus on services was the lowest since December 2012.

Economists polled by Reuters had forecast the trade gap widening to $56.8 billion in February from a previously reported $56.6 billion in the prior month.

Part of the rise in the trade deficit in February reflected commodity price increases. The politically sensitive goods trade deficit with China fell 18.6 percent to $29.3 billion. The deficit with Mexico surged 46.6 percent in February.

News of the worsening trade deficit comes as the United States and China are embroiled in tit-for-tat tariffs which have rattled global financial markets.