Trade Deficit Narrows, But Gains Might Not Last

The trade deficit narrowed dramatically in March to $8.5 billion as rising demand for American jetliners, telecommunications equipment and computers pushed U.S. exports to a second consecutive monthly record.

The Commerce Department said Wednesday that the March trade gap between imports and exports was down 19.3 percent from February’s $10.5 billion deficit. Exports shot up 4.1 percent, offsetting a record 1.2 percent rise in imports.

The Clinton administration hailed the better-than-expected showing as evidence of America’s global competitive clout, but private economists said the improvement won’t last.

Major overseas markets in Europe and Japan remain mired in slow growth while the U.S. economy is racing ahead, pushing up demand for foreign products. U.S. consumers have also benefited from a strong rise in the value of the dollar over the past two years, which makes foreign products cheaper in this country.

“We are not out of the woods yet. Today’s number is just a temporary reprieve,” said Lawrence Chimerine, chief economist at the Economic Strategy Institute, a Washington think tank.