U.S. trade deficit dropped by 0.7 percent to 58.4 billion dollars in February, marking the second consecutive monthly decline, the Commerce Department reported Friday.

The trade deficit, or the gap between what America sells abroad and what it imports, was the smallest since November.

Data showed that U.S. exports of goods and services declined by 2.2 percent to 124 billion dollars in February. Sales of a variety of manufactured goods from computer accessories to industrial machinery and civilian aircraft also decreased.

The nation's imports of goods and services were down by 1.7 percent to 182.4 billion dollars as foreign oil bills fell by 15.2 percent to 20.7 billion dollars, the lowest level since June 2005.

With oil prices on global markets rising again recently, however, that improvement could be short-lived, according to analysts.

U.S. deficit with Canada dropped by 29 percent in February to 4.8 billion dollars, the lowest level since December 2003. Its deficit with the European Union fell by 2.2 percent to 6.4 billion dollars.

For the first two months of 2007, U.S. trade deficit is running at an annual rate of 704 billion dollars, down from last year's record gap of 765.3 billion dollars. The trade imbalance has set new records for five consecutive years.

Source: Xinhua