PHOTO
View inside a US Amazon company plant, where around 600 people work, in the municipality of Leon, Guanajuato state, Mexico on March 14, 2024. - In 2019, Amazon co-founded and became the first signatory of The Climate Pledge, committed to achieving net-zero carbon emissions by 2040. The initiative now has more than 450 signatories in 58 industries and 41 countries, including one from Mexico. (Photo by MARIO ARMAS / AFP)
The US trade deficit was wider than analysts anticipated in March -- hovering close to the biggest in nearly a year -- with exports and imports both declining, according to government data published Thursday.
The trade gap came in at $69.4 billion, narrowing slightly from February's $69.5 billion figure -- which had been revised larger, said the Commerce Department.
Analysts had expected a figure of $69.0 billion, according to Briefing.com.
While consumption has helped to support US trade, economists see trade flows easing ahead with cooler global demand and growth.
Elevated interest rates in the United States could also weigh on demand in the country.
On Wednesday, the US central bank held rates at a 23-year high to stamp out stubborn inflation.
But for now, the "widening of the deficit in the first few months of the year is pointing to ongoing resilient domestic demand" alongside a backdrop of weaker global demand, said economist Rubeela Farooqi of High Frequency Economics.
She noted a "jump in imports" in the first quarter.
For March, exports and imports were both lower.
Exports fell by $5.3 billion to $257.6 billion, and imports receded $5.4 billion to $327.0 billion.
In particular, goods exports dropped by $5.1 billion with a decline seen in capital goods like civilian aircraft, as well as industrial supplies and materials.
Meanwhile, imports of goods declined on the back of lower shipments for passenger cars and other consumer goods, data showed.
The slightly smaller deficit between February and March, however, came as an uptick in the services surplus outweighed a larger goods deficit, said the Commerce Department.
The goods deficit with China was up $2.2 billion to $24.1 billion in March.