The U.S. trade deficit narrowed more than forecast in March as a slump in demand for imported goods offset the impact of the first export decline in more than a year, Bloomberg reported.

The gap shrank to $58.2 billion, the lowest this year, from $61.7 billion in February, the U.S. Commerce Department said. The trade deficit with China was the smallest since 2006.

Imports dropped the most in six years as purchases of furniture, cars and telecommunications equipment fell, reflecting the weakest growth since 2001 and a falling dollar that makes overseas goods more costly. Economists anticipate that the U.S. expansion will stall this quarter as households struggle to cope with soaring food and fuel bills, a monthly survey by Bloomberg News published today showed.

Economists had forecast the trade gap would narrow to $61 billion from a previously reported $62.3 billion, according to the median of 71 economists surveyed by Bloomberg News. Forecasts ranged from $59 billion to $64.9 billion.

The dollar, which fell earlier today, remained lower after the report. The U.S. currency was at $1.5431 per euro at 10:35 a.m. in New York, compared with $1.5393 late yesterday.

Imports decreased 2.9 percent, the most since December 2001, to $206.7 billion. Purchases of crude oil dropped, even as the average price for the month jumped to a record $89.85 per barrel. The quantity of petroleum bought from overseas was the lowest since February 2007.

Receding demand for goods from China helped narrow the trade gap with that nation to $16.1 billion, the smallest in two years. At the same time, exports to China were the second-highest ever.