Partly reflecting a jump in the value of exports, the Commerce Department released a report on Thursday showing the U.S. trade deficit narrowed in the month of March.
The Commerce Department said the trade deficit shrank to $64.2 billion in March from a revised $70.6 billion in February.
Economists had expected the trade deficit to narrow to $63.3 billion from the $70.5 billion originally reported for the previous month.
The narrower trade deficit came as the value of exports jumped by 2.1 percent to $256.2 billion in March after plunging by 2.8 percent to $250.8 billion in February.
Exports of industrial supplies and materials increased sharply, led by crude oil, while exports of automotive vehicles, parts and engines also rose.
Meanwhile, the value of imports slipped by 0.3 percent to $320.4 billion in March after slumping 1.6 percent to $321.5 billion in February.
Notable decreases in imports of capital goods and industrial supplies and materials offset a jump in imports of consumer goods.
The report also said the goods deficit narrowed to $86.6 billion in March from $93.0 billion in February, while the services surplus was little changed at $22.4 billion.
"We anticipate trade will pose a drag on GDP growth for the remainder of the year as weakening external demand and a strong dollar weigh on exports while flagging domestic demand pushes imports lower," said Matthew Martin, U.S. Economist at Oxford Economics.
