US trade deficit likely narrowed in March

The advance goods balance of US unexpectedly narrowed in March by around USD 6.5 billion. Exports dropped by USD 1.4 billion, while imports fell USD 7.9 billion. The drop in imports was due to a USD 5 billion fall in consumer goods imports. With services balance likely to remain unchanged from February and goods balance narrowing sharply, the services and goods trade deficit are likely to have narrowed in March to USD 41.1 billion from February’s deficit of USD 47.06 billion, according to Societe Generale.

Meanwhile, the US ISM non-manufacturing index for April is likely to have risen from March’s 54.5 to 55, noted Societe Generale. The Richmond Fed services report and Dallas Fed services survey have both indicated a marked rebound in services revenue in April. The Richmond services revenue index rose to +15 from +9, whereas the Dallas Fed measure increased to +10.6 from +6.4.