WASHINGTON, April 10: The US trade deficit for goods and services narrowed to $40.3 billion in February from a revised $41.2 billion in January, the Commerce Department said on Thursday.

Wall Street economists polled by AFX News called for the deficit to widen to a seasonally adjusted $42.0 billion in February.

In January, the trade deficit was originally recorded as $41.1 billion.

“The trade deficit narrowed in February, though the level remains way too high,” said independent economist Joel Naroff.

“But as the war begins to wind down, the focus is once again on the real economy and thus there is some good news in this report. There was a small increase in exports and a minor decline in imports, both of which are welcomed news.”

The drop in imports could reflect some of the self-correcting effect of a falling dollar, which makes imports more expensive and US exports more competitive.

US Treasury Secretary John Snow argued in a television interview that the big US deficits in trade and capital flows cited by global policymakers are no cause for alarm, saying they reflect US economic strength.

Snow, interviewed on CNBC television, acknowledged that the US current account deficit — which reflects trade as well as capital flows — will likely be discussed at this weekend’s meetings of the Group of Seven finance ministers and the International Monetary Fund and World Bank.

Snow said the deficit reflects the slow growth rates in the rest of the world.

He cited the need for “a compact on growth” for the global economy.—Reuters