Unstoppably the trade deficit has peaked up to $50 billion
The Commerce Department released a statement on Thursday that read that the U.S. goods and services deficit had widened to a certain extent in March.
Demand for foreign goods outweighed imports and this led to the deficit in trade with our global trading partners.
The trade deficit stood at $50 billion at the end of March and this is a rise of almost 1.5% from February. A survey where Refinitiv surveyed economists saw the result predict that the trade deficit would grow to $50.2 billion which is a revised figure from the $49.3 billion in February.
The trade deficit though it has shown a slight improvement has not recovered to the place that it was in back in December 2018 where it was at an all-time high.
The trade gap grew rapidly to stand at $59.9 billion last year, this was the largest the deficit has ever been in the past 10 years. According to reports from the commerce department the goods and services deficit decreased by $5.8 billion almost 3.7% from the last year. Imports, however, rose by 1.1% to $261.97 billion when calculated on a month over month basis.
The bump in the imports came primarily from the energy and crude purchases, these rose by almost $1.4 billion and to help things along with a 39% surge in soybean exports drove exports up by 1%.
The economy is looking unstable with the current situation what with the rocky trade relations between China and the U.S. Will it render the trade deficits increase meaningless? Or does this signify the start of another good spell for U.S. trade? Only time will tell.