The US trade deficit narrowed by 5.7 per cent to $58.2bn in March, as weak demand for imported goods due to the economic downturn offset a shrinking of US export volume that was ascribed to a fall in aircraft shipments.

The data, released on Friday, was significantly better than the $61bn trade deficit expected by most economists. Several reacted by saying that US gross domestic product for the first quarter, which was initially estimated to have grown at an annual rate of 0.6 per cent, could now be revised higher.