FEBRUARY INTERNATIONAL TRADE DEFICIT LEVEL STAYS RELATIVELY LOW

PETROLEUM COSTS BOOST IMPORT PRICE INDEX IN MARCH

RETAIL SALES BOUNCED BACK LAST WEEK

The Department of Commerce, announced today that total February exports of $68.1 billion and imports of $76.3 billion resulted in a goods and services deficit of $8.2 billion, $1.7 billion less than the revised $9.9 billion figure for January. February exports were $1.3 billion more than January exports of $66.8 billion. February imports were $0.4 billion less than January imports of $76.7 billion.

The international trade balance numbers are important because the amount by which imports exceed exports subtracts from the value of the nation's Gross Domestic Product (GDP).

For the last seven months the deficit has been averaging a little more than $8 billion per month, or an annualized rate of $96.6 billion. This is somewhat smaller than the annual deficits of $106.2 billion and $111.5 billion in 1994 and 1995.

In another news release today, the Labor Department reported that the U.S. Import Price Index rose 0.5 percent in March. The increase was attributable to higher petroleum prices and followed a 0.1 percent decrease in February. When the cost of petroleum products was excluded, the index actually dropped by 0.4 percent. The U.S. Export Price Index was down 0.1 percent, the second monthly decline in a row.

Today Mitsubishi Bank/Schroder-Werthiem reported that sales at the retail stores it surveys each week rose by 3.4 percent in the week ending April 20. This more than made up for the 2.3 percent drop in weekly sales during the previously-reported week.

Byline: Lafferty (MF Merlin)