Tuesday, May 6, 2014

Trade Deficit Dropped to $40.4 Billion in March

The U.S. trade deficit contracted by 4% in March to $40.4 billion, due primarily to export strength. March’s report revised down February’s headline number. Despite the improvement, the trade deficit in March was larger than the government assumed in its advance first quarter GDP estimate. As such this report could further depress the already low first quarter growth.

Exports increased by 2.1% to $193.9 billion. The petroleum deficit narrowed by $1.4 billion in March to $18.6 billion. The service industry increased its surplus and the goods deficit contracted slightly to $60.7 billion.

Imports also increased by 1.1% to $234.3 billion. The greater increase in exports compared to imports creased a reduction in the real deficit.

Read the Census report.

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