US monthly trade deficit for March 2022

US international trade balance for March 2022:

  • international trade balance $-109.8 billion vs. -107.0 billion. This is the largest since January 1992
  • last month -89.8 billion vs. -89.2 billion initially reported
  • Imports $61.14 billion vs. 58.11 billion estimate. Last month $56.76 billion revised from 56.08 billion. Imports were $351.5 billion which was a whopping 32.9 billion more than February.
  • Exports $63.63 billion vs. $61.76 billion estimate. Last month $59.84 billion revised from 58.75 billion
  • goods deficit increase by $20.4 billion to $128.1 billion. The service surplus came in at $0.4 billion to $18.3 billion
  • YTD the goods and service deficit increase by $84.8 billion and 41.5% from the same. In 2021. Exports increased $104.5 billion or 17.7%. Imports increased $189.3 billion and 23.8%
  • Industrial supplies materials imports increased by $11.3 billion
  • Crude oil inventories increase $1.2 billion. Finished metal shapes increased $6.8 billion. Automotive vehicle parts and engines increased $3.2 billion. Computers increase $1.5 billion. Computer accessories $1.3 billion. Textiles and household goods increase $2 billion.

A larger trade deficit lowers GDP. The preliminary 1st quarter GDP was largely lower because of the trade deficit and inventory. This revised data for March should lower the estimate for 1st quarter GDP in the next cut all things being equal.

The good news is the import numbers show the demand in the US is continuing to increase. Also inventories can be assumed to be replenished which could be a positive for inflation going forward all things being equal. The supply chain has been a major contributor to inflation. Unclogging it would be a welcome development going forward (as long as demand remains the same or decreases).

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