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U.S. trade deficit shrinks in March as economic weakness cuts imports |
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Written by Martin Crutsinger, THE ASSOCIATED PRESS
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Monday, 12 May 2008 |
WASHINGTON - The U.S. trade deficit narrowed sharply in March as demand for imports fell by the largest amount since the last recession was ending.
The Commerce Department reported Friday that the deficit totalled $58.2 billion, down 5.6 per cent from February, a larger improvement than had been expected.
The smaller deficit reflected spreading weakness in the U.S. economy, which cut demand for imports by 2.9 per cent, the largest one-month decline since December 2001, one month after the formal end of the last recession.
The decline, which pushed imports down to $206.7 billion, was led by a 5.9 per cent decrease in America's foreign oil bill. The amount of petroleum imported fell as the average price for crude oil jumped to an all-time high. Imports of autos and a wide variety of other consumer goods from furniture to toys and clothing also fell, reflecting hard economic times facing U.S. consumers.
Exports, which have been one of the few strong points in this period of weakness, suffered a setback in March, falling to $148.5 billion - still the second-highest level on record but down 1.7 per cent from the all-time high set in February. Sales abroad of American airliners, cars, computers and machinery were all down.
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Last Updated ( Monday, 12 May 2008 )
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