WASHINGTON – The nation’s imports of goods and services exceeded exports in March by $63.9 billion, an increase of 10.4 percent from the February trade deficit of $57.9 billion, according to a report today by the U.S. Census Bureau and Bureau of Economic Analysis. The gap had narrowed in February by 3.8 percent.
The trade deficit exceeded the $60 billion median forecast from a survey of 78 economists by Bloomberg News, but still fell well short of the August record $68.9 billion gap. Imports and exports were the second highest on record, Bloomberg noted, as rising oil prices and record purchases of consumer goods from abroad were largely offset by rising global demand for U.S. products.
Total U.S. exports increased by $2.2 billion or 1.8 percent in March to $126.2 billion, after falling 2.2 percent in February from January’s record $126.8 billion. Increases in exports of industrial supplies and materials, auto vehicles and parts, consumer and other goods, private services, travel and transportation were partially offset by decreases in exports of foods, feeds and beverages. Capital goods exports were steady.
Total imports increased by $8.2 billion or 4.5 percent to $190.1 billion after falling 1.7 percent in February and 0.5 percent in January. Increases in imports of industrial supplies and materials, auto vehicles and parts, foods, feeds and beverages, private services, travel and transportation were partially offset by decreases in imports of capital goods
Compared with March 2006, the nation’s trade deficit increased $1.6 billion or 2.6 percent, as exports increased $10.7 billion or 9.2 percent and imports increased $12.3 billion or 6.9 percent.
The nation’s trade deficit with China narrowed, driven by record U.S. exports and imports that were at 12-month low. The U.S. trade gaps with the European Union, Canada and Mexico all widened in March.“Exports are doing very well, and we’re expecting to see some slowing in the rate of U.S. consumer spending,” Nigel Gault, chief U.S. economist at Global Insight Inc. in Lexington, Mass., told Bloomberg. “The combination means that we’ll probably see a small improvement in the trade deficit this year, which would contribute to growth” in the U.S. economy.
Additional information, including the 47-page U.S. International Trade in Goods and Services report, is available at www.bea.gov.
