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The Commerce Department released a report on Thursday showing the U.S. trade deficit narrowed in the month of February after soaring to a record high in January.
The report said the trade deficit decreased to $122.7 billion in February after spiking to a revised $103.7 billion in January.
Economists had expected the trade deficit to fall to $123.5 billion from the $131.4 billion originally reported for the previous month.
The smaller trade deficit came as the value of exports surged by 2.9 percent to $278.5 billion, while the value of imports was virtually unchanged at $401.1 billion.
