The U.S. Commerce Department reported on Thursday that U.S. the goods and services trade deficit narrowed to $39.9 billion in February from a revised $45.5 billion in the previous month (originally a gap of $45.3 billion). This represented the lowest trade gap since September 2016.

Economists had expected a deficit of $40.0 billion.

According to the report, the February decline in the goods and services deficit reflected a decrease in the goods deficit of $5.9 billion to $61.2 billion and a decrease in the services surplus of $0.4 billion to $21.3 billion.

Exports of goods and services from the U.S. fell 0.4 percent m-o-m to $207.5 billion in February, while imports dropped 2.5 percent m-o-m to $247.5 billion.

Year-to-date, the goods and services deficit tumbled 18.7 percent from the same period in 2019. Exports rose 1.1 percent, while imports decreased 3.6 percent.