The US trade deficit narrowed unexpectedly to $55 billion in March in the largest monthly drop in over three years, as exports rose to a new record and clothing and other imports from China declined, a US government report showed today.
The 9.2 per cent plunge in the deficit defied Wall Street forecasts.
Analysts had expected high oil prices and a flood of clothing from China to push the monthly trade gap to around $61.5 billion, which would have been a new record.
The sharp pullback in imports offered further evidence that the economy hit a soft patch early in the year, but more recent reports have shown renewed strength.
Imports of clothing, textiles and related goods from China fell 21.2 per cent during March after a 9.8 per cent increase in February.
Total imports from China declined 4.4 per cent to $16.2 billion in March.
US exports, led by increased shipments of capital goods and food, feeds and beverages, hit a record $102.2 billion. US exports to Canada and the European Union set record highs.
