Trade Deficit Narrows on Lower Imports

Washington, DC, May 9, 2008--The U.S. trade deficit narrowed substantially in March as demand for imports fell by the largest amount since 2001.

The Commerce Department said Friday that the deficit totaled $58.2 billion, down 5.6 percent 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 percent.

The decline pushed imports down to $206.7 billion, mostly because of a 5.9 percent decrease in oil imports due to rising prices.

Exports, which have been one of the few strong points in this period of weakness, also fell to $148.5 billion, but it was still the second highest level on record.

The March improvement may prompt the government to revise its estimate for economic growth upward for the first three months of the year.