News Video

News Video
Search, view and share videos about news and entertainment from around the Web.
See Videos »

Blog Chatter

What are tags?
List

User-Submitted News

Top stories submitted and voted on from Propeller.

Most Popular Stories

Most Commented On

Most Recent Comments

NEWS ALERTS

Get the latest updates sent straight to your inbox.

Sign up to receive AOL News alerts by e-mail.

March trade deficit drops by bigger-than-expected amount

By MARTIN CRUTSINGER,
AP
Posted: 2008-05-09 09:13:53
WASHINGTON (AP) - The U.S. trade deficit narrowed sharply in March as demand for imports fell by the largest amount since the last recession was ending.

The Commerce Department reported 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 largest one-month decline since December 2001, one month after the last recession ended.

The decline, which pushed imports down to $206.7 billion, was led by a 5.9 percent decrease in America's foreign oil bill. The amount of petroleum fell as the average price for crude oil jumped to an all-time high. Imports of autos and a wide variety of other consumer goods from furniture to toys and clothing also fell, reflecting the hard economic times facing U.S. consumers.

Exports, which have been one of the few strong points in this period of weakness, suffered a setback in March, falling to $148.5 billion, still the second highest level on record but down 1.7 percent from the all-time high set in February. Sales of commercial airliners, cars, computers and machinery were all down.

The big improvement in the March deficit was expected to prompt the government to revise upward its estimate for economic growth for the first three months of the year. Ian Shepherdson, chief economist at High Frequency Economics, said he expected economic growth to be revised to a rate of 1.1 percent in the first three months of this year, well above the government's initial estimate last week that the economy grew at a barely discernible 0.6 percent rate during the first quarter.

The politically sensitive deficit with China dropped by 12.4 percent to $16.1 billion, the smallest level in two years, as U.S. exports to China climbed to the second highest level on record, led by sales of medical testing equipment and computer chips. At the same time, imports of Chinese products dropped sharply, reflecting lower demand for cloths, textiles and toys.

Trade has become a key debating point in this year's election campaigns. Republicans including Sen. John McCain contend that President Bush's free trade policies have expanded opportunities for U.S. exports while Democrats contend that Bush has not done enough to protect American workers from unfair foreign competition.

The president last month sent Congress a free trade agreement with Colombia but its consideration has been blocked by House Speaker Nancy Pelosi who says the deal cannot be approved until the administration reaches agreement with Democrats on policies to soften the economic blows being suffered by Americans.

For the first two three months of this year, the trade deficit is running at an annual rate of $715.5 billion, up slightly from last year's imbalance of $708.5 billion, which had been the first decline after the deficit set records for five consecutive years.

Economists believe that the deficit will decline this year and that exports will continue to benefit from a weaker dollar and imports will fall, reflecting the weak U.S. economy, which many analysts believe has already fallen into a recession.

For March, the deficit with Canada, America's biggest trading partner, edged up 0.4 percent to $6.5 billion, while the deficit with the European Union rose by 9.1 percent to $7.5 billion even though U.S. exports to the EU edged up 1.2 percent to a record $24.1 billion. This reflected the boost that American products have gotten as the U.S. dollar fell to a record low against the euro.

The deficit with Japan rose 8.9 percent to $7.5 billion while the imbalance with the Organization of Petroleum Exporting Countries totaled $14.1 billion, an increase of 6.8 percent from February.

Copyright 2008 The Associated Press. The information contained in the AP news report may not be published, broadcast, rewritten or otherwise distributed without the prior written authority of The Associated Press. Active hyperlinks have been inserted by AOL.
05/09/08 09:11 EDT
Bookmark

Recent Comments

Post Your Own  
1 - 10 of 46
46 comments

davidcindy9 07:42:39 PM May 09 2008

Report This!

THANK YOU REPUBLICAN PERVERT CONGRESS. CONFEDERATE MONEY IS WORTH MORE THAN OUR ALLMIGHTY DOLLAR. 666

dwuzzie 07:14:11 PM May 09 2008

Report This!

Nobody can afford Chinese crap????? We are in bad shape

jaguarpete 06:13:40 PM May 09 2008

Report This!

This country has survived the last seven and one half years of the greatest ineptitude ever witnessed. Obama will be light years better than the current fool. We've just about gone bankrupt from the imbicile in power. Close to 5,000 soldiers dead in Iraq for no good reason, seven trillion dollars deeper in debt. Highest gas prices ever. Highest electricity rates ever, Highest food prices ever. lowest dollar value ever. The list goes on and on, yet the Republicans never once even mentioned impeaching the fools. By the time the Democrats too Congress back from them, it was too late. Vote Democrat all the way up and down the ticket this November. It's our only chance to regain a little of what we've lost.

esbroomstick 04:38:00 PM May 09 2008

Report This!

SEAN-.....OBAMA, HILARY, MCCAIN HAS TAKEN MONEY FROM OIL, AND GAS COMPANIES......HILARY 236.000....MCCAIN 207.000....OBAMA 110.000,THESE AMOUNTS MAY HAVE INCREASED SINCE THIS WAS REPORTED SEVERAL MONTHS AGO.......rOMNEY WHO DROPPED OUT TOOK 346,000.....AND SPENT 50.000.000 OF HIS OWN MONEY TOO, TO NO PREVAIL.......SHOW ME A HONEST POLITICIAN !

esbroomstick 04:30:03 PM May 09 2008

Report This!

THE TRADE DEFECIT IS DOWN FOR ONE REASON, AND ONE REASON ALONE-----THE VALUE OF THE DOLLAR IS VERY LOW, FOREIGNERS ARE BUYING AMERICAN GOODS MORE FOR THAT REASON...FOREIGNERS ARE BUYING UP BUSINESSES HERE, HOMES, AND COMPANIES, TAKING ADVANTAGE OF THE LOW DOLLAR VALUE ! OUR GOVT. SHOULD NEVER HAVE LET OUR TRADE DEFECIT GET OUT OF HAND, TO THE TUNE OF SEVERAL BILLIONS DOLLARS ANYWAY ! THIS IS JUST ANOTHER EXAMPLE OF GOVT. MIS-MANAGEMENT TO THE HIGHEST LEVEL !

naramanor 04:04:33 PM May 09 2008

Report This!

I believe that the people in congress or senate for years are the problem!!!!!
VOTE THEM OUT!!!!!

sean62965 03:51:46 PM May 09 2008

Report This!

I have no problem with Obama. He doesn't seem to come with any baggage. He is not beholden to any big corps. One thing for sure, we need to shake things up. What we have now is not working very well.
We have a few years to play catch up on renewables and alternative fuel and energy sources. Our current admin had been in denial for years.

fopdaddy1 01:56:01 PM May 09 2008

Report This! markletmein 12:40:35 PM May 09 2008

Report This! Obumma and his anti-american "advisors" will destroy this country through ineptitude and socialism.

it`s already been destroyed by the neocon greed machine, Obama may, if we are willing to work for it, be able to put us back on track

jputh1 03:31:42 PM May 09 2008

Report This!

shut down the country and bring it to it`s knees.thats the only way to bring this to an end.Your money isn`t worth the paper it`s written on,so what have you got to lose.If your job isn`t gone it soon will be.Right now i believe more in uncle remus than uncle sam.

fivestarfoodsux 03:16:14 PM May 09 2008

Report This!

True Americans need to boycott corporations such as Five Star Food Service Inc. that are not american owned and operated. They will screw the american people in order to cater to terrorists that threaten our great country. Shut them down before they can use your money and resources to finance any more terrorist acts against the US. Thank you and God bless America.

s1og1 03:15:42 PM May 09 2008

Report This!

markletmein is exactly the kind of fool to vote for his/her own destitution. saying obama will be responsible for americas decline is rediculous. Washington is simply a subsidiary of corporate america now. It doesn't matter who gets elected as president they will be no more than a figure head like the queen of england with no real power

1 - 10 of 46
46 comments

Add your own Comments

Clear
Add

The world's top-ranked tennis player hangs up her racket. The world's top-ranked tennis player hangs up her racket.
1 of 7

* Want the latest Hot Seat polls delivered to your Vista desktop? Hot Seat Vista Gadget »

CNN.com

More Stories

Technology

More Stories

Top News Photos

Jury President Sean Penn and Natalie Portman chat Wednesday at the opening of the 61st International Film Festival in Cannes, France.
Jeff Christensen, AP

Jury President Sean Penn and Natalie Portman chat Wednesday at the opening of the Cannes Film Festival.

Top Videos

News Bloggers

Ada Calhoun
Dinesh D'Souza
Mo Rocca
Ben Greenman
  • Ben Greenman
  • Ants!
  • 05/14/08 05:00 PM by Ben Greenman
The Young Turks