To: American Spirit who wrote (61349 ) 5/11/2005 8:31:36 PM From: lorne Read Replies (3) | Respond to of 81568 as. Now this should make you happy and love GW Bush just a little bit more. :-) Exports drive down US trade deficit By David Litterick in New York (Filed: 12/05/2005) The US trade deficit showed its biggest drop in three years last month as exports rose to a record level and imports from China eased back.telegraph.co.uk The March deficit was $55billion (£29billion), well below the $60billion expected by the markets. Clothing imports from the far east, a controversial issue in both the US and Europe, were significantly lower than in previous months, while the figures were also flattered by a large jump in exports of erratic items such as civilian aircraft. The figures gave the dollar a boost against other currencies and raised hopes of stronger economic growth in the first quarter than had been forecast. However, most economists doubted whether the improvement would be sustained. "It's a relief," said James Glassman, senior economist at JP Morgan Chase in New York. "It does dampen the fears that there was something bad going on in the US economy." First-quarter growth would be "closer to 4pc" than the 3.1pc the government estimated last month, he said. The figures could be a sign that the depreciation of the dollar, which has declined by around 7pc over the past year, could finally be making US exports cheaper and more attractive. However, the strength of the US consumer is likely to mean imports continue to remain strong for some time to come and most economists doubted whether the improvement in the deficit could be sustained. Even with the slowdown in imports from China, the trade deficit with the country is up 40pc so far this year from the first three months of 2004. Yesterday's data is unlikely to stem calls from politicians for the Chinese government to change its currency policy. Critics say China is deliberately keeping the value of its currency low to boost exports, although there are signs the government may be ready to loosen the peg linking the yuan to the dollar. Despite the improvement, the deficit is still the sixth largest ever recorded. The UK's trade deficit unexpectedly narrowed in March to the lowest in a year due to a reduced demand for imports. The deficit totalled £4.4billion, down from a revised £5billion in February, the Office for National Statistics said.