Overview: The U.S. Treasury recorded a deficit of $220.9 billion in February.  The U.S. trade deficit narrowed 6.6% to $37.3 billion in January.  Retail sales rose 0.3% in February.  Business inventories were unchanged in January.  Initial jobless claims fell by 6,000 to a level of 462,000 for the week ended 3/6.

The U.S. Treasury recorded the largest monthly deficit in history in February, with expenditures exceeding revenues by $220.9 billion.  The February 2010 deficit was 14% higher than the next largest deficit on record, which occurred in February of 2009. 

The U.S. trade deficit in goods and services unexpectedly narrowed by $2.6 billion (6.6%) in January to $37.3 billion as both exports and imports declined.  The trade deficit with China increased 0.9% to $18.3 billion in January. 

Retail sales surprised on the up side with a 0.3% increase in February; excluding autos, sales were up 0.8%.

Business inventories were unchanged in January.

Initial jobless claims fell by 6,000 to 462,000, for the week ended March 6th.