WASHINGTON – The U.S. international trade gap narrowed in March to $40.4 billion from a slightly downward revised $47.0 billion gap in February, with the key factor being a sharp decline in consumer goods imports, data released by the Commerce Department Wednesday morning showed.
The goods gap narrowed to $58.5 billion from $64.5 billion in the previous month, though the petroleum gap was not the culprit this month. That gap narrowed only modestly to $3.0 billion from $3.5 billion in February
Excluding petroleum, the goods gap narrowed to $54.1 billion, much smaller than the $59.7 billion gap in the previous month.
The BEA's advance trade report suggested a substantial narrowing of the goods gap on a Census basis to $56.9 billion from $63.4 billion in the previous month, which was incorporated into the advance 1Q GDP report. The actual Census goods gap was reported at $57.1 billion in Wednesday's report, smaller than the $63.2 billion gap now reported for February, but slightly wider than the advance estimate.
Imports of consumer goods fell by $5.1 billion in March, with most of the components down. The largest of those declines were for toys, games, and sporting goods and two apparel categories.
Capital goods imports fell by $1.6 billion, led by computer accessories and electrical apparatus.
Industrial supply imports fell by $976 million in March, with imports of petroleum products, crude oil, and fuel oil all down modestly.
Imports of autos and food supplies were also down in the month.
Goods exports also declined in the month, pulled down by consumer goods, which fell $1.6 billion. Exports of autos, industrial materials, and foods also declined, offset by a jump in capital goods exports.
The services surplus widened to $18.1 billion in March from $17.6 billion in February. Services exports rose slightly, while imports declined in the month.
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