Merchandise Trade Deficit Declines as Weak Dollar Spurs U.S. Exports

The nation’s merchandise trade deficit narrowed slightly to $38.3 billion from January through March as the weaker dollar increased sales abroad and slowed the growth of imports, the government reported Wednesday.

The Commerce Department said the trade deficit declined 0.7% in the first quarter of the year after hitting a record high of $38.6 billion from October through December.

Imports Increase 1%

During the first three months of the year, imports rose 1% to $96.5 billion, and American exports posted a second consecutive quarterly advance, rising 2.1% to $58.2 billion, according to the balance of payments figures.

The improvement was more substantial in volume terms. Import volume fell 3%, but this was offset by a 4% rise in prices, reflecting the big declines in the value of the dollar in the last two years.

Imports of petroleum increased by 8% to $8.7 billion, a gain attributed entirely to higher prices. The average price per barrel of imported oil rose to $15.63 from $12.74, but the average number of barrels imported daily declined by 11.7% to 6.09 million barrels.

A 3% rise in non-agricultural exports, which totaled $51.6 billion, offset a 6% drop in sales of farm products overseas.

The decrease, which left crop sales at $6.6 billion, was attributed principally to a 28% drop in soybean sales, reflecting decreased exports to Western Europe and Japan.