The US trade deficit grew more than expected in February as a small gain in exports to the highest level in 16 months was offset by a bigger increase in imports, reflecting higher demand for consumer goods, the government reported Tuesday. The Commerce Department said the February trade deficit increased 7.4 percent to $39.7 billion, bigger than the $38.5 billion deficit expected by economists. February's deficit was the highest since December and followed a $37 billion deficit in January. Exports rose 0.2 percent, while imports jumped 1.7 percent. The slight gain in exports to $143.2 billion was still the best performance since the peak of the global financial crisis in October 2008. Imports rose sharply to $182.9 billion, also the highest level since October 2008. The politically sensitive trade deficit with China narrowed to $16.5 billion in February, its lowest level in almost a year. Imports from China fell 7.2 percent to $23.4 billion, the lowest since May 2009. For the first two months of this year, the trade deficit is running at an annual rate of $459.9 billion, up 21.5 percent from the $378.6 billion imbalance recorded in 2009. That had been the smallest trade deficit in eight years, reflecting the severe U.S. recession that lowered demand for imports. February's wider deficit was a sign of a rebounding U.S. economy. Economists expect the deficit to increase this year, but they hope that expanding exports-sparked by a rebound in the global economy and a weaker U.S. dollar, which makes U.S. products cheaper overseas-will continue to help U.S. manufacturers.