Trade deficit shrinks to lowest point in four months

The trade deficit shrank in February to its lowest point in four months as U.S. exports hit a record high. 

The deficit fell to $46 billion down from $52.5 billion in January, a drop of 12.4 percent, and an improvement that may convince economists to upwardly revise growth estimates for the first three months of the year, the Commerce Department reported Thursday.

Exports hit an all-time high of $181.2 billion, up 0.1 percent from January's $180.9 billion, while imports fell 2.7 percent to $227.2 billion from $233.4 billion after reaching a record high in January.

Estimates for first-quarter growth are coming in below the final three months of last year from 3 percent to around 2.5 percent.

Trade is a top priority for the Obama administration, which is aiming to double exports by 2015. 

As part of that effort, President Obama will head to Colombia for a summit with 30 other leaders to discuss boosting trade and economic ties to Latin America. He will stop in Tampa, Fla., on his way south to tout the need for better trade relations. 

Obama and Colombian President Juan Manuel Santos may announce over the weekend that the South American nation has completed the requirements to wrap up work on the free-trade agreement with the United States. 

White House officials wouldn't confirm on Wednesday that any announcements would be made but said the participation of U.S. Trade Representative Ron Kirk and Labor Secretary Linda Solis "speaks to the interest that we have in making sure that the implementation of the free trade agreement goes forward effectively."  

"I think Secretary Solis' participation demonstrates our continued focus on moving forward with the labor action plan and our commitment to stand up for workers’ rights as we move toward implementation of the trade agreement," a senior administration official said. 

The United States sends 40 percent of its exports to Latin America. 

Meanwhile, the trade deficit with China dropped to $19.4 billion in February, down 25.6 percent in February for the lowest deficit since March 2011. 

Last year, the United States racked up the largest-ever deficit with any single country — $295.5 billion with China. 

Oil imports fell to $37.3 billion, the lowest level since October, as prices soared from about $75 a barrel to around $103 in February.