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The numbers: The trade deficit in goods narrowed 10.3% to $68 billion, according to the government’s advanced report released Thursday. This was the first narrowing of the deficit in seven months and came in well below the $73.4 billion estimate of economists polled by MarketWatch.
The government’s advanced report on wholesale inventories showed a 0.5% gain in March. And advanced retail inventories fell 0.4%
What happened: Imports fell 2.1% in March and the declines were widespread. Of the major categories, only auto imports rose in the month. Exports rose 2.4% during the month. The narrowing of the deficit in goods points to a smaller overall trade deficit in March.
Big picture: Trade had been expected to be a drag on first-quarter growth because of the jump in imports in January and February, but the sharp narrowing of the deficit in March means that it will at least be much less of a negative. First-quarter GDP data is due on Friday.
Market reaction: Not much movement. U.S. stocks were on track for a modest opening gain.