U.S. Trade Deficit Widens 11.6% in March, Meeting Forecast

Goods and Services Deficit Still Down 17.8% Year-to-Date

Washington, D.C. (PPD) — The U.S. Census Bureau and the U.S. Bureau of Economic Analysis (BEA) reported the U.S. trade deficit for goods and services widened $4.6 billion (+11.6%) to $44.4 billion in March. That roughly met the forecast and follows a $39.8 billion trade deficit in February, revised.

Forecasts ranged from a low deficit of $45.2 billion to a high of $34.0 billion. The consensus forecast was $44 billion.

The increase in the goods and services deficit was driven by an increase in the goods deficit of $4.6 billion to $65.6 billion and a decrease in the services surplus of $0.1 billion to $21.2 billion. Exports were down $20 billion to $187.7 billion in March and imports were down $15.4 billion to $232.2 billion.

Year-to-date, the goods and services deficit has still narrowed by $28.1 billion, or 17.8% from the same period in 2019. Exports fell $21.7 billion or 3.5%, while imports were down $49.7 billion or 6.4%.

The three-month moving average for the goods and services deficit fell $1.4 billion to $43.2 billion ending in March. Average exports declined $7.2 billion to $201.3 billion and imports fell $8.6 billion to $244.5 billion.

The three month moving average goods and services deficit year-over-year narrowed $9.4 billion. Average exports narrowed $7.2 billion and average imports by $16.6 billion from March 2019.

Trade in Goods By Country for March

The politically-sensitive trade in goods deficit with China fell $4.2 billion to $15.5 billion. Exports rose $0.3 billion to $7.8 billion and imports fell $3.9 billion to $23.3 billion.

The trade in goods surplus with the United Kingdom (UK) fell $1.2 billion to $0.1 billion. Exports were down $1.3 billion to $4.9 billion, but imports were down less than $0.1 billion to $4.8 billion.

The trade in goods deficit with the European Union rose $4.3 billion to $16.9 billion. Exports fell $0.6 billion to $21.8 billion and imports rose $3.7 billion to $38.7 billion.