Trade Deficit Takes Sharp Turn for Worse: Near Record March Imports Swamp Exports MER
The U.S. merchandise trade deficit took a sharp turn for the worse in March, increasing by 38.5 percent as America's seemingly insatiable appetite for foreign cars, phones and machinery for offices and factories sucked in near record levels of imports, the Commerce Department announced yesterday.</br></br>But economists saw a bright side to the trade numbers, noting that the $8.4 billion deficit for March is below the monthly average for 1989. Analysts also praised the continued strong showing of U.S. exportsÛÓ$33.3 billion in MarchÛÓwith overseas sales growing twice as fast as imports during the first three months of the year.</br></br>ÛÏThat's the kind of trend you like to see. Eventually, the two lines have to cross," said Howard Lewis, vice president for international economic affairs for the National Association of Manufacturers (NAM).</br></br>He said that, so far this year, the trade deficit is running at an annual rate of $90 billion, far better ÛÏthan a lot of people, including us, had expected.Û Commerce Secretary Robert A. Mosbacher also said strong export growth Ûªwill keep the 1990 trade deficit under $100 billion for the first time since 1983.</br></br>of Evans Economics, said the totals for the first three months are skewed by the February deGcit of $6.1 billion, which was viewed as an aberration. They predicted little change in the deficit from last yearÛªs $109 billion level.