Trade gap shrinks by 3.6% to US$40.4b

[WASHINGTON] The US trade deficit narrowed in March as exports grew by the most in nine months, another signal that growth was poised to pick up.

The gap shrank by 3.6 per cent to US$40.4 billion from the prior month's US$41.9 billion, Commerce Department figures showed yesterday in Washington. Sales to foreign customers climbed 2.1 per cent on growing demand for aircraft, autos and fuels.

A slowdown in trade helped depress economic growth in the first quarter, which was already held back by harsh winter weather that trimmed business investment.