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| -$28.9 B | -$27.6 B | -$26.130 B |
- Due to the value of exports falling by more than the value of imports, the US trade deficit for March came in wider than in February.
- Report showed that trade deficit widened to $27.6 billion in March from a revised $26.1 billion in February.
- Economist had expected the deficit to widen to $29.0 billion compared to the $26.0 billion originally reported for the previous month.
- While the trade deficit in March is wider than in the previous month, it is much narrower than the $57.4 deficit reported in March 2008.
- Notable decrease in the value of exports contributed to the wider deficit.
- Value of exports fall –2.4% to $123.6 billion in March from $126.6 billion in February. This is the lowest level since August of 2006.
- Imports on the other hand edged down -1% to $151.2 billion from $152.8 billion in February.
- Annualized trade deficit has fallen to 2.4% of GDP from peak of 6% in 2005
"While the global imbalances have certainly come a long way in correcting themselves, its been done more with the drop in imports than a jump in exports.” – Miller Tabak, equity strategist
- Goods deficit widened to $38.4 billion in March from $37.1 billion in February.
- Services surplus narrowed to $10.8 billion in March from $11.0 billion in February
- Trade deficit with China widened to $15.6 billion in March from $14.2 billion in February.
This widening of of the trade deficit signified weaker confidence for the US economy, driving the US dollar lower and driving gold prices up 1% today acting as that extra catalyst to drive investment appeal for Gold as well as other commodities not because of an increase in consumption but because of the devaluation of the dollar.
This is also signaled from the treasury prices, pushing yields up and pushing prices lower on top of the higher appeal for investors to take on more risk.
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