US trade deficit reaches third consecutive month

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It is reported that the United States trade deficit has grown for the third consecutive month, reaching $70.5 billion. The goods and services gap has widened by 2.7%, which is the widest it has been in four months. The economists' median estimate had been a $68.8 billion gap. The inflation-adjusted deficit was $104.6 billion, again the largest gap seen in four months. In February, exports of motor vehicles and capital equipment declined, but there was a three-year record high in travel exports or visitors to the US spending money.

A trade deficit occurs when a country imports more goods and services than it exports. This can happen for various reasons such as differences in currency exchange rates, labor costs, tariffs, and trade policies. A trade deficit can have positive and negative effects on an economy. On one hand, it can lead to increased access to goods and services and lower prices for consumers. On the other hand, it can lead to a loss of jobs in certain industries and an increase in a country's debt to other countries. It's important to note that a trade deficit is just one aspect of a country's overall balance of trade, which includes factors such as investment income and foreign aid.

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