1st-Quarter U.S. Trade Deficit Hits 6-Year Low : First-Quarter Trade Deficit Hits 6-Year Low

The U.S. trade deficit fell to $26.4 billion from January through March, the lowest quarterly imbalance in more than six years, the government reported today.

The Commerce Department said the 8.2% improvement from a $28.7-billion fourth-quarter deficit resulted from a record level of U.S. sales abroad offsetting the highest volume of oil imports in more than 12 years.

For the first quarter, U.S. exports rose 4.7% to an all-time high of $96.04 billion. Imports also were at a record level, based on a surge in oil demand, climbing 1.6% to $122.4 billion. The trade deficit is the difference between imports and exports.

Today’s report on merchandise trade as calculated on a balance-of-payments basis confirmed trends already noted in the department’s monthly merchandise trade reports. They showed a first-quarter deficit of $23.9 billion.

The disparity in the two figures comes from the fact that today’s report excludes military sales by the U.S. government and makes other minor adjustments to the monthly figures.

Analysts were generally heartened by the new figures despite the surge in oil imports. They noted that U.S. export sales remain at strong levels. Since growth in exports has fueled a large portion of U.S. economic growth over the last three years, the continuation of this trend is seen as a promising sign for the future.

The first-quarter deficit was the smallest since a $21.7-billion shortfall in the fourth quarter of 1983.