US trade deficit drops to $38.8 billion in March as flow of crude oil falls to 17-year low
WASHINGTON – The U.S. trade deficit narrowed for a second month in March as the daily flow of imported crude oil dropped to the lowest level in 17 years. The deficit with China hit a three-year low.
The Commerce Department says the trade deficit decreased to $38.8 billion, an 11 per cent drop from February’s $43.6 billion.
Exports fell 0.9 per cent to $184.3 billion as sales of machinery, autos and farm products all declined. Imports fell 2.8 per cent to $223.1 billion, led by a 4.4 per cent drop in foreign petroleum. Crude oil imports averaged just 7 million barrels per day, the lowest since March 1996.
A smaller trade gap can boost overall economic growth as American companies earn more from overseas sales while U.S. consumers and businesses spend less on foreign products.
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