WASHINGTON, May 2 Reuters The U.S. trade deficit narrowed slightly in March as a decline in imports was tempered somewhat by a plunge in exports.

The trade deficit contracted 0.1 to 69.4 billion, the Commerce Department39;s Bureau of Economic Analysis said on Thursday. Data for February was revised to show the trade gap widening to 69.5 billion instead of 68.9 billion as previously reported. Economists polled by Reuters had forecast the deficit climbing to 69.1 billion in March.

Trade, through a surge in imports, was a large drag on gross domestic product in the first quarter. The economy grew at a 1.6 annualized rate last quarter after expanding at a 3.4 pace in the OctoberDecember period.

Imports dropped 1.6 in March to 327.0 billion. Goods imports fell 1.6 to 263.8 billion. There were decreases in imports of motor vehicles and parts as well as industrial supplies and materials, which include crude oil.

But imports of consumer goods increased 3.0 billion, boosted by pharmaceutical preparations. Capital goods imports were the highest on record. Services imports fell 1.1 billion to 63.2 billion, pulled down by transport and travel.

Exports tumbled 2.0 to 257.6 billion. Goods exports plummeted 2.9 to 171.3 billion. There were decreases in exports of capital goods, industrial supplies and materials, and foods, feeds and beverages. Exports of services fell 0.2 billion to 86.4 billion.

Reporting by Lucia Mutikani; Editing by Andrea Ricci

Source Reuters