Factory Orders Drop 2.3% While Trade Deficit Rises - Los Angeles Times
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Factory Orders Drop 2.3% While Trade Deficit Rises

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From Associated Press

Orders to U.S. factories for manufactured goods fell 2.3% in March, the biggest drop in almost two years, while the U.S. trade deficit continued to swell, hitting a new record with Japan, the government reported today.

New orders on a seasonally adjusted basis fell to $194.17 billion in March following a 1.3% drop in February, the Commerce Department said. The March decline was the biggest since a 3.3% decrease in April, 1984.

Without a 45.1% jump in March defense orders, factory orders would have fallen an even sharper 4.1%, which would have been the biggest decline since May, 1980.

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The report provided further evidence that U.S. manufacturers have yet to see much relief from the battering they have received from foreign competition.

In a separate report today, the Commerce Department said the country’s foreign trade deficit widened to $14.52 billion last month as imports of manufactured goods climbed to an all-time high.

Last month’s shortfall in the trade of merchandise ranging from raw materials and farm commodities to oil and manufactured goods was up from February’s deficit of $12.49 billion but still below the all-time high of $16.46 billion in January.

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The country’s trade deficit with Japan reached a monthly record of $5.52 billion, 27.5% higher than the deficit in February.

The deterioration last month occurred even though falling oil prices cut the value of petroleum imports by 13%.

U.S. imports hit a record $25.28 billion last month, 13.9% higher than in February.

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