The March 2008 trade statistic was the lowest trade gap since November 2003, the Commerce Department said.
Economists surveyed by Bloomberg News had expected the March 2008 trade deficit to be $60.8 billion.
The February 2008 trade deficit was revised lower to $61.7 billion from $62.3 billion. The trade deficit was $59.0 billion in January 2008.
In March 2008, nominal imports decreased 2.9% to $206.7 billion, while nominal exports fell 1.7% to $148.5 billion.
Slowing U.S. economy weighs
Economist David H. Wang told BloggingStocks Friday the March 2008 trade report clearly displays the effects of a slowing U.S. economy.
"We see a clear pullback in domestic demand in March [2008], and the core import number was down 3%, so that's indicative of fewer consumers making purchases, which is consistent with belt-tightening and U.S. payroll reductions," Wang said. "It's clear now our nation is demanding less from international suppliers, which will have a negative effect on their economies, as well."
Wang added that "the fact that exports dropped for the first time in a year is an indication that foreign economies and consumers are also feeling the effects of the economic slowdown."
Still, Wang said the March 2008 trade report may mean the U.S. economy is growing at a slightly stronger rate than the preliminary 0.6% Q1 2008 GDP growth statistic announced earlier. "My sense is that it may be 0.7-0.9%, but not any higher than that," Wang said.
Economists caution that the U.S. trade deficit may not continue to narrow in the months ahead if oil prices remain above $100 per barrel, given the nation's need to import large amounts of oil. Oil rose above $125 per barrel Friday morning, a record.
In the March 2008 trade report, the average price of oil increased to a record $89.85 a barrel, but demand decreased 9% to 8.97 million barrels a day.
Both imports, exports fall
Concerning imports, autos fell 9.3%, consumer goods dropped 4.8%, industrial supplies dropped 3.2%, and services declined 0.2%.
Regarding exports, autos/auto parts declined 9%, consumer goods declined 5.5%, and industrial supplies dipped 0.3%. Foods/feeds rose 2.9%.
Economists prefer that a nation run a trade surplus as opposed to a to trade deficit, as it usually implies that a nation's goods are competitive on the world stage, its citizens are not consuming too much, and that it's amassing capital for future investment and economic goals.
Ford (F): A bullish case for a turnaround
Why the CEO-superstar athlete pay metaphor is wrong
Cramer on BloggingStocks: In retail, lower prices beckon 
