WASHINGTON - The U.S. trade deficit widened by 2.5% to $40.4 billion in March, the largest deficit since December 2008, the Commerce Department reported today.
Imports increased by $5.6 billion, or 3.1%, and exports increased by $4.6 billion, or 3.2%. Imports and exports both reached the highest dollar amount levels since October 2008.
February’s deficit was revised lower to $39.4 billion from $39.7 billion reported last month.
Economists expected the trade deficit to widen to $40.1 billion, according to the median estimate from Thomson Reuters.
The trade deficit reached a low of $25.8 billion in May 2009 amid the recession and has steadily increased since then. Through the first three months of 2010, the trade deficit was $116.8 billion compared with $92.2 billion a year ago.
Exports were up 20.4% from March 2009 and imports increased 24.2%.
Petroleum imports increased in March along with oil prices. The petroleum deficit rose to $24.8 billion, the highest since October 2008. The average price per imported barrel of oil increased to $74.32.
The trade deficit with China increased to $16.9 billion from $16.5 billion in February.
The U.S. trade surplus reached a record high with the Commerce Department’s category of Newly Industrialized Countries: Hong Kong, Korea, Singapore and Taiwan. The trade surplus increased to $2.8 billion in March.
