• Foreign trade deficit increases as economy improves.

• Exports and imports reversed earlier declines.

The advance estimate of the U.S. trade deficit in goods widened to a record $90.59 billion during March from $87.07 billion in February. During Q1'21, the trade deficit averaged $87.34 billion versus $83.44 billion averaged in Q4'20. An $87.4 billion March deficit had been expected in the Action Economics Forecast Survey.

Exports increased 8.7% (11.5% y/y) last month after a 3.6% February decline. Imports improved 6.8% (20.6% y/y) after falling 1.0% in February.

By category, nonauto consumer goods exports jumped 15.3% (18.1% y/y) following two months of sharp decline. Exports of capital goods rose 7.3% (-1.2% y/y) after falling 5.9% in February. Autos & parts exports increased 7.2% (15.4% y/y) after declining for two straight months. Foods, feeds & beverages exports edged 0.9% higher (21.5% y/y), also following two months of significant decline, while industrial supplies & materials exports rose 10.1% (19.2% y/y) after a 0.8% improvement.

Imports of autos & parts rose 7.3% (8.3% y/y) following two months of significant decline. Food & beverage imports rebounded 7.0% (9.4% y/y) last month after falling 4.9% in February. Nonauto consumer goods imports rebounded 7.0% (37.5% y/y) following a 4.2% drop. Auto & parts imports rose 7.3% (8.3% y/y) after falling sharply for two straight months. Industrial supplies imports strengthened 7.6% (22.1% y/y) with higher oil prices. Capital goods imports rose 5.7% (16.6 y/y) after a 0.3% improvement.

The advance international trade data can be found in Haver's USECON database. The expectation figure is from the Action Economics Forecast Survey, which is in AS1REPNA.

Note: Current month is based on Advance Trade data; Previous months reflect revised data from International Trade release.