The U.S trade deficit plunged to $58.2 billion, said the Commerce Department Friday, the lowest since 2003. That's down by about $3.5 billion from February's deficit of $61.7 billion. This could also mean we'll see upward changes in the 0.6 percent annualized GDP for the first quarter.
Most of this is the result of the weak U.S. dollar.
Areas of exports that were particularly strong were to the Eurupean Union and South America, which both produced record exports for the time frame. U.S. exports to the European Union reached $24.1 billion, and exports to South America increased to $10.9 billion.
Exports to China were the the second best ever, coming in a $6.4 billion, the highest in two years.
Food exports increased by 2.9 percent to $9.5 billion, led by huge increases in wheat (23.6%) and soybeans (19.7%), as prices rose.
"Under normal circumstances a decline in the real adjusted trade balance and the improvement in the overall picture for output would be a cause for a positive reaction in the market," wrote Joseph Brusuelas, chief economist for Merk Investments. "However, the data inside the March trade report suggests that the rapid rise in headline inflation has sharply reduced the appetite of U.S. consumers for goods and services across the board."
Sponsored link: The outsourcing every manager requires - Tampa Locksmith
Comment Preview