Trade deficit narrowed in February, as aircraft sales led exports higher
WASHINGTON -- The U.S. trade deficit in goods and services narrowed sharply to $10.4 billion in February from $12.67 billion a month earlier, as soaring civilian-aircraft sales propelled exports to a record level.</br></br>The figures reflected a healthy U.S. economy. But analysts expect the gap to widen in the months ahead, with export sales slowing. February exports rose to a record $73.46 billion from $70.65 billion a month earlier. Imports rose more slowly, to less than $84 billion from $83.31 billion in January.</br></br>Early yesterday, the Commerce Department reported the February deficit at $11.59 billion but changed its numbers in the evening after rechecking the figures. It said that "data-reporting errors at several ports of entry" caused a $1.1 billion overcount when tallying crude-oil imports for the month. After seasonal adjustments, it added, the February deficit was recalculated at $10.4 billion.</br></br>The department said a complete revision of the figures will be released today.</br></br>Even the relatively small rise in imports prompted many economists to scale back their optimistic estimates of gross-domestic-product growth for the first quarter. Surprisingly strong reports on consumer spending and industrial production had led to "a consensus number for the first quarter of 4.5% growth," said Chris Varvares, an economist with Macroeconomic Advisors in St. Louis, well above the strong 3.8% growth in the fourth quarter. The trade numbers, he said "could knock anywhere from 0.75 to 1.25 percentage points off first-quarter GDP estimates."