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.
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.
