Trade gap narrows in March

The U.S. trade deficit shrunk to $58.2 billion in March, down from $61.7 billion in February, a drop of 5.7%, according to the Department of Commerce. Economists had forecasted the trade gap would narrow to $61 billion, according to the median of 71 economists surveyed by Bloomberg News.Imports, which totaled $206.7 billion in March, declined 2.9%, while export sales decreased 1.7%, to $148 billion. The declining demand for foreign goods indicated that the contracting economy has forced more U.S. citizens to consider belt-tightening in the face of increasing food and fuel costs, and an uncertain credit market. Shrinking imports were attributed to declines in demand for several imported goods, such as oil, which dropped 8.9% amid skyrocketing energy costs, as well as imported cars, which declined by 9.3%. Export declines were fueled by decreasing demand for U.S. goods, including a drastic 31.9% decrease in sales of civilian aircraft. Service exports were relatively unchanged for the month, with a decrease of $100,000 million.