U.S. Merchandise Trade Gap Shrank During 1st Quarter
WASHINGTON -- The nation's merchandise trade deficit, calculated on a balance-of-payments basis, narrowed in the first quarter, but the improvement was restrained by rising import prices, government figures show.</br></br>The quarterly gap stood at $38.33 billion, compared with a revised $38.6 billion in the fourth quarter. Previously, the department put the fourth quarter deficit at $38.37 billion.</br></br>The value of imports increased 1% to $96.54 billion in the latest quarter after rising 2.1% to $95.62 billion in the third period. The first-quarter figures reflected a 3% drop in volume and a 4% increase in prices, however, the department said.</br></br>"It's another one of those reports in which imports grow a little and prices are up quite a bit," said David Hartman, senior economist at Data Resources Inc. in Lexington, Mass. "The slow improvement that we have forseen still looks like it's on target."</br></br>Imports of auto parts from Japan and Mexico grew strongly; other increases included building materials, textile products and capital goods other than aircraft. Imports of petroleum and related products rose 8.5% to $8.69 billion after increasing 1.4% to $8.01 billion in the fourth quarter. By volume, oil shipments fell to 6.09 million barrels a day from 6.9 million; the average price of a barrel rose to $15.63 from $12.74.