The US trade deficit widened in March as an artificial intelligence 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 percent to US$60.3 billion (HK$472.6 billion), the Commerce Department’s Bureau of Economic Analysis and Census Bureau said on Tuesday. 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 2.2 percent annualized rate last quarter.
Imports increased 2.3 percent to US$381.2 billion in March. Goods imports rose 3.6 percent 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 percent to an all-time high of US$320.9 billion. Goods exports surged 3.1 percent 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.
Reuters
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