The surge in the trade deficit to a massive $51.4bn in March, from $35.9bn, means that the economy contracted slightly in the first quarter. Nevertheless, the enormous 7.7% m/m jump in imports is mainly because, following the resolution of the labour dispute in February, the West Coast ports began to work through their backlogs in March. Assuming that most of the catch-up is now complete then imports should fall back in April, bringing the trade deficit down to a more normal level too.
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