Thursday, May 2, 2013

Trade Deficit Sharply Drops in March

The US foreign trade deficit dropped 11% in March to $38.8 billion. The decrease is the second in two months, following a revised decline of 2% in February. The trade gap is well below the 2012 high of $52.3 billion. The decrease in the deficit is primarily due to shrinking imports.

Imports declined by 2.5% in March, settling at $223.1 billion. Exports declined as well from a revised 186.0 to 184.3, a -0.9% change. The goods deficit was primarily responsible for March’s trade deficit, and helped contribute to the drop, decreasing from $60.8 billion to $56.1 billion. The services surplus also increased $0.2 billion to $17.3 billion, adding to the deficit reduction.

The real goods deficit, which is important to calculate GDP, narrowed to $44.4 billion from $47.8 billion.

Read the Census report.

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