The Commerce Department reported that the March U.S. trade deficit fell down to $58.2 billion. In a sign of weaker global growth, both imports and exports fell sharply. Nominal imports slipped 2.9% to $206.7 billion, the largest decline in more than 6 years, despite record oil prices. Nominal exports dropped to $148.5 billion, the biggest drop in nearly 3 years, despite higher prices for U.S. farm products. After adjusting for inflation, the real trade gap was the lowest since November 2003. The weaker-than-expected trade gap implies an upward revision to the 0.6% first estimate for first-quarter gross domestic product growth.
Copyright Schaeffer's Investment Research http://www.schaeffersresearch.com