Drop In Demand Good?

Trade Deficit Fell Unexpectedly in March, to $55 Billion,

An unexpected retreat in the United States’ demand for imports trimmed the trade deficit in March to a six-month low, the government reported today, creating a far brighter picture of the economy than previous data suggested.

A big drop in demand is a GOOD thing? OK, what am I missing?

3 thoughts on “Drop In Demand Good?

  1. Didn’t oil prices drop a bit last month? Flirting with $50/barrel after being well above that? Also, if the general economy tanks, imports should go down as well.
    Still, the economics propeller-heads should have already accounted for all that, so it wouldn’t have been “unexpected.”

  2. When we can no longer afford to buy anything, the trade deficit will drop to zero. Isn’t that wonderful?
    In other news, forget your pension: it’s less important than the (presumptive) survival of the company that promised to hold and wisely invest your own retirement money for you.

  3. It’s not good, but an constant, increasing CA deficit isn’t good either. If exports were increasing though, that would be good.

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