US trade deficit widens in March on imports, petroleum exports rise

US trade deficit widens in March on imports, petroleum exports rise

The trade gap increased 4.4% to US$60.3 billion, says the commerce department.

The US goods imports rose 3.6% to US$302.2 billion, boosted by a surge in capital goods to a record high of US$120.7 billion. (EPA Images pic)
WASHINGTON:
The US trade deficit widened in March as an artificial intelligence (AI) investment boom pulled in imports, more than offsetting an increase in exports, which were partly boosted by petroleum shipments amid the Middle East conflict.

The trade gap increased 4.4% to US$60.3 billion, the commerce department’s bureau of economic analysis and census bureau said today.

Economists polled by Reuters forecast the trade deficit rising to US$60.9 billion in March.

Trade subtracted 1.30 percentage points from gross domestic product growth in the first quarter.

The economy grew at a 2% annualised rate last quarter.

Imports increased 2.3% to US$381.2 billion in March. Goods imports rose 3.6% to US$302.2 billion, boosted by a surge in capital goods to a record high of US$120.7 billion.

Exports increased 2.0% to a an all-time high of US$320.9 billion. Goods exports surged 3.1% to a record high US$213.5 billion amid a rise in the shipments of petroleum.

The US-Israeli war with Iran, which has disrupted oil shipments and raised crude prices, will likely further boost petroleum exports in the months ahead. The US is a net oil exporter.

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