US Trade Deficit Nar­rows in Boost to First-quar­ter GDP

The Economic Times - - Smart -

Wash­ing­ton: The US goods trade deficit nar­rowed sharply in March as im­ports tum­bled, sug­gest­ing eco­nomic growth in the first-quar­ter was prob­a­bly not as weak as cur­rently an­tic­i­pated. The Com­merce Depart­ment said in its ad­vance re­port on Wed­nes­day that the goods trade gap fell to $56.90 bil­lion in March from $63.44 bil­lion in Fe­bru­ary. March’s com­pre­hen­sive trade re­port, which in­cludes ser­vices, will be re­leased next Wed­nes­day.

Goods im­ports fell 4.4% to $173.6 mil­lion last month, out­pac­ing a 1.2% drop in ex­ports.

The small goods deficit sug­gested there could be an up­side sur­prise in GDP growth for the first quar­ter. Econ­o­mists polled by Reuters have fore­cast GDP ris­ing at a 0.7% an­nu­alised rate.

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