The Department of Commerce announced today that the U.S. Trade deficit decreased to $58.2 billion in March down from $61.7 billion in the previous month. Exports were lower in March by $2.6 billion, but this was offset by a decrease in imports by $6.1 billion. The goods deficit decreased $3.5 billion from February to $68.6 billion and the services surplus was unchanged at $10.4 billion.
The largest deficits by country were with China $16.1 billion (vs. $18.4 billion in February), OPEC $14.1 ($13.2), Japan $7.5 ($6.9), the European Union $7.5 ($6.9), Canada $6.5 ($6.5), Mexico $6.0 ($5.5).
The trade deficit is following the trend of declining during periods of economic slowdown or more precisely with the fall of personal income. Before the 2001 recession, increases in the trade deficit were offset by larger increases in personal income. However, in this decade, America has begun living way beyond their means. The disparity is now over $700 billion a year and growing because personal income is dropping faster than the reduction of the trade deficit.
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