US Goods Trade Deficit Hits Record Level As Americans Increase Imports

<div id=”js-article__body” itemprop=”articleBody” data-sbid=”WP-MKTW-0000248782″>

The numbers: The US goods trade deficit rose in March for the third month in a row and hit another record, but the rise is mainly due to the US economy recovering faster than other countries. The advanced goods trade gap rose 4% to $ 90.6 billion in March, the U.S. Census Bureau said Wednesday.

US imports of goods rose 6.8% to a record $ 232.6 billion in March. US exports increased 8.7% to $ 142.1 billion. Exports have recovered more slowly than imports because the economies of other countries have not recovered as quickly as those of the US The result has been lower demand for US products. The government will release general trade figures for March next week, but the size of the trade deficit is generally linked to changes in exports and imports of goods. Business patterns related to services rarely change much from month to month. A larger deficit subtracts from gross domestic product, the official scorecard for the US economy. Trade is one of the few areas that has been a relatively weak point for the economy, but strong consumer and business spending has easily offset the drag. The government is expected to report on Thursday that GDP rose 6.5% in the first quarter. Meanwhile, an advanced look at wholesale inventories showed a 1.4% increase in March. And an early look at retail inventories revealed a 1.4% drop. Market Reaction: In pre-trade trading, US stocks had to open mixed.