The deficit in US advance international trade, which accounts for payments done ahead of shipment, jumped 18% on the month to a record $125.3 billion in March as a strong dollar sharply boosted imports by US manufacturers and businesses, Commerce Department data showed on Wednesday
WASHINGTON (Pakistan Point News / Sputnik - 27th April, 2022) The deficit in US advance international trade, which accounts for payments done ahead of shipment, jumped 18% on the month to a record $125.3 billion in March as a strong Dollar sharply boosted imports by US manufacturers and businesses, Commerce Department data showed on Wednesday.
"The international trade deficit was $125.3 billion in March, up $19.0 billion from $106.3 billion in February," the Commerce Department said in a news release on the advance payments, made as soon as an order is confirmed or at any time before shipment.
Advance payment for imports stood at $294.6 billion in March, some $30.3 billion more than in February. Those for exports were at $169.3 billion, some $11.4 billion higher than the previous month.
Economists had projected an advance trade deficit of $105 billion in March, putting what the Commerce Department reported at well above expectations.
"This is the worst reading on record by far and a big miss," economist Adam Button said in a post on the ForexLive platform. "The US dollar is benefiting from financial flows but trade will be a big drag in Q1. Some of this is balanced out by the US services trade surplus but looking further out, given widening US growth differentials over Europe and the ongoing improvement against others as well, this could widen further. Eventually, it will be a big drag on the dollar. That's a lot of Dollars leaving the United States."
Button said the deficit also indicated that the initial reading for first-quarter US gross domestic product, or GDP, due on Thursday could show "near-zero growth."
Economists have also projected a GDP growth of 1.1% for the first quarter versus 6.9% in the fourth quarter of 2021.
