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But the smaller deficit, which could see
economists raise their first-quarter growth estimates, is
probably temporary given a stronger dollar and weaker global
demand.
The Commerce Department said on Thursday the trade deficit
narrowed 16.9 percent to $35.4 billion, the smallest since
October 2009.
January's shortfall on the trade balance was revised to $42.7
billion from a previously reported $41.8 billion.
Economists polled by Reuters had forecast the trade deficit
slipping to $41.2 billion.
When adjusted for inflation, the deficit narrowed to $50.8
billion in February from $54.6 billion the prior month.
The now-settled labor dispute at the West Coast ports appears to
have slowed the flow of imports and exports. The strong dollar,
weak global demand as well as lower crude oil prices also likely
impacted the trade balance in February.
While the smaller trade deficit is positive for gross domestic
product, it does little to change views that economic growth
slowed sharply in the first quarter.
Growth estimates range between a 0.6 percent and 1.7 percent
annual pace. The economy grew at a 2.2 percent pace in the
fourth quarter.
In February, imports tumbled 4.4 percent to $221.7 billion, the
lowest since April 2011. Imports of petroleum products were the
lowest since September 2004.
Exports fell 1.6 percent to $186.2 billion in February, the
smallest since October 2012.
Exports to Canada and Mexico - the main U.S. trading partners -
fell in February. Exports to China tumbled 8.9 percent, while
those to the European Union were unchanged.
Imports from China plunged 18.1 percent, pushing the politically
sensitive U.S.-China trade deficit down 21.2 percent to $22.5
billion.
(Reporting by Lucia Mutikani; Editing by Andrea Ricci)
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