Updated: 12-May-09 09:08 ET

March Trade Balance

Updated: 12-May-09 09:08 ET

Highlights

• The March trade deficit was -$27.6 billion.  That was narrower than the -$29.0 billion consensus estimate, but up from the revised -$26.1 billion deficit for February.
• March exports were $3.0 billion less than February exports of $126.6 billion while March imports were $1.6 billion less than February imports of $152.8 billion.  On a year-over-year basis, total exports were down 17.4% while total imports were down 27%.
• The real trade deficit, which is price adjusted, widened to $35.9 billion from $35.7 billion in February.  Still, that left the first quarter average of $38.5 billion roughly 10% below the fourth quarter average of $43.0 billion.  It is also an improvement from the first quarter average through February, so it should factor favorably for the revised Q1 GDP number.

Key Factors

• Overall, the March trade balance report serves as another reminder that global trade continues to contract as countries around the globe grapple with the effects of the financial crisis.

Big Picture

• '