US Trade Deficit Narrows in Boost to First-quarter GDP
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.