US trade deficit narrows slightly in March

The US trade deficit narrowed slightly in March, as the decline in imports was somewhat offset by the decline in exports.

The trade deficit contracted 0.1% to $69.4 billion, the Commerce Department’s Bureau of Economic Analysis reported Thursday. Data for February was revised to show a widening of the trade gap to $69.5 billion, rather than the $68.9 billion previously reported.

The economists consulted by Reuters They had forecast the deficit would rise to $69.1 billion in March.

Trade, through an increase in imports, was a major drag on the Gross Domestic Product (GDP) in the first quarter. The economy grew at an annualized rate of 1.6% last quarter, after expanding at a rate of 3.4% in the October-December period.

Imports fell 1.6% in March to $327 billion. Imports of goods fell 1.6% to $263.8 billion. There were declines in imports of motor vehicles and their parts, as well as industrial supplies and materials, including crude oil.

But imports of consumer goods increased by 3 billion, driven by pharmaceutical preparations. Imports of capital goods were the highest on record. Service imports fell $1.1 billion to $63.2 billion, dragged down by transportation and travel.

Exports fell 2% to $257.6 billion. Goods exports fell 2.9% to $171.3 billion. There were declines in exports of capital goods, industrial supplies and materials, and food, feed and beverages. Service exports fell by $200 billion to $86.4 billion.

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