Trade Deficit Falls 9%, Biggest Drop In Years, To $55 Billion In Mar.; Some Fear U.S. Slowdown; Imports tanked by 2.5% as shoppers curbed buys; exports rose a solid 1.5%.(A)

Byline: LAURA MANDARO

The U.S. trade deficit unexpectedly plunged 9% in March to $55 billion, a six-month low, as demand for foreign consumer goods dived.

Economists expected a record $62 billion. Instead, the Commerce Department on Wednesday reported the biggest monthly decline since December 2001.

Imports fell 2.5%, also the worst drop since the end of 2001. Exports rose 1.5%.

Yearly gains for imports and export have halved over the last several months, a sign that the U.S. and the world are cooling off.

After all the hand-wringing over the swelling U.S. deficit, a smaller gap would seem to be good news for the economy -- and …