Washington, April 10 (Bloomberg) -- The U.S. trade deficit unexpectedly narrowed for a second straight month in February led by a surge in exports of commercial aircraft, a government report showed. Less demand for computers and other business equipment caused imports to fall. The $40.3 billion trade gap in goods and services followed a revised $41.2 billion deficit in January, the Commerce Department said. The figure compares with a record $44.9 billion shortfall reached in December and is the third-highest ever. ``I wouldn't be real optimistic about a marked improvement in the trade story just yet,'' said Michael Moran, chief economist at Daiwa Securities America Inc. in New York, before the report. Moran forecast the deficit would decline to $40.5 billion. ``Economic weakness overseas'' will keep exports from improving quickly, he said. Economies worldwide have sputtered this year as oil prices rose and concern mounted that the war in Iraq would damp demand. An economic rebound abroad may be slow to develop, keeping spending on American-made goods anemic and the deficit wide. Fewer exports may restrain a U.S. economy struggling to gain strength. Economists had expected a deficit of $42 billion compared with January's previously reported $41.1 billion gap, according to the median estimate of 64 forecasts in a Bloomberg News survey.
Exports rose 0.5 percent to $82.4 billion in February from $82 billion the previous month. Shipments abroad of commercial aircraft increased 8 percent to $2.5 billion from $1.4 billion. Boeing Co. said it delivered twice as many airplanes to foreign buyers in February than a month earlier. Excluding the export of commercial aircraft, U.S. shipments abroad would have declined.
Imports
Consumer goods exports fell 7.2 percent in February, led by a drop in pharmaceutical shipments, after rising 7.3 percent the prior month. Imports fell 0.4 percent for the month to $122.8 billion. The declined reflected less demand for computers, civilian aircraft and generators. Rising oil prices are keeping imports elevated. The value of U.S. oil imports rose in February to $7.5 billion from $7.4 billion the previous month. The price of oil was $30.46 a barrel, the highest since February 1983, compared with $27.73 in January and the nation imported 247.1 million barrels for the month compared with 268.4 million barrels. Imports of autos and parts rose 0.3 percent in February after falling 4.6 percent the previous month. Americans bought 0.5 percent more foreign-made consumer goods, while businesses spent 4.3 percent less on capital goods.
Earnings Pinched
Company earnings are being pinched by slowing demand. DaimlerChrysler AG, the world's fifth-largest carmaker, said yesterday that meeting its goal of increasing 2003 earnings may be ``difficult.'' The carmaker's estimates for economic growth for the U.S. were cut to 2.4 percent from 3.3 percent. European growth expectations were reduced to 1.4 percent from 2.6 percent and those for Japan to 0.4 percent from 0.7 percent. ``The global business environment has deteriorated significantly,'' Chief Executive Juergen Schrempp said during the company's annual meeting with shareholders. The world economy will grow 3.2 percent this year, down from expectations of 3.7 percent growth as recently as September, the International Monetary Fund said yesterday. It lowered its forecast for U.S. growth to 2.2 percent, down from 2.6 percent. The outbreak of severe acute respiratory syndrome across Asia may damp growth in one of the few regions of the world showing relatively strong growth, further pressuring exports.
`Body Blow'
``A serious epidemic could deal another body blow to the travel industry and could disrupt one of the few regions of the world with real economic strength,'' said Ethan Harris, chief economist at Lehman Brothers Inc. in New York, before the report Forecasters there have dropped growth projections for Hong Kong by 0.5 percentage point since the outbreak. The value of the dollar hasn't fallen enough yet to make American goods cheaper abroad and help exporters gain sales abroad. The dollar is down 5.3 percent against a trade-weighted basket of 37 of the country's biggest trading partners. ``It would take another 20 percent drop in the value of the dollar for that, in and of itself, to lead to a narrower trade deficit,'' said Lara Rhame, an economist at Brown Brothers Harriman & Co. in New York, before the report. ``I don't think we can count on a lot of relief from the value of the dollar.''
By region, the Commerce Department reported that the trade deficit with Japan widened to $5.3 billion from $5.2 billion. The trade gap with China narrowed to $7.6 billion, the lowest since April 2002, from $9.4 billion. The deficit with the Organization of Petroleum Exporting Countries narrowed to $3.4 billion from $3.6 billion. The deficit with Canada, the largest U.S. trading partner, narrowed to $4.3 billion from $4.9 billion. The gap with Mexico widened to a record $3.9 billion from $3 billion. The deficit with Western Europe narrowed to $6.6 billion from $7 billion. //www.bloomberg.com