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Trade Deficit Narrowed in March, but Exports Fell

Domestic demand for imports fell in March by the most since 2001, the latest indication that the economic slowdown has forced Americans to rein in their spending habits, the government reported on Friday.

Americans shied away from buying imported automobiles, which fell 9.3 percent in March, and oil, which dropped 8.9 percent. It was the second consecutive month that crude oil imports had declined. Declines were reported in a variety of other consumer goods ranging from clothing to toys and furniture.

At the same time, exports decreased for the first time in 12 months, a troubling sign for American businesses struggling with a pullback among domestic consumers. Foreign purchases have helped prop up the American economy amid the current slowdown.

For the month, the Commerce Department reported, the trade deficit narrowed to $58.2 billion from a downwardly revised $61.7 billion in February. The 5.7 percent decrease was more than economists had expected.

Imports were down 2.9 percent in March, to $206.7 billion from $212.8 billion in February, the sharpest decline since December 2001. Sales of foreign cars, telecommunications equipment and crude oil all fell, even as demand perked up for health care goods and clothing.

“Consumers struggling with high inflation, negative wealth effects, falling home prices and increased job insecurity mean imports will fall back much further this year,” Dimitry Fleming, an economist at ING Bank in London, wrote in a note to clients.

Export sales dropped 1.7 percent to $148.5 billion from $151.1 billion in February, as demand eased for American-made automobiles, capital goods, and — strikingly — civilian aircraft, sales of which fell 31.9 percent. Purchases of American foods and beverages increased.

The trade deficit with China narrowed to $16.1 billion, the lowest level in two years, and also narrowed with South America and France. Over all, the trade deficit with Europe widened slightly, to $7.1 billion from $6.8 billion in February.

The deficit with Canada rose slightly, up 0.4 percent to $6.5 billion, while the deficit with Japan rose 8.9 percent, to $7.5 billion.