WASHINGTON (AP) – The U.S. trade deficit in March jumped to the highest level in more than six years as a small increase in exports was swamped by a flood of imports from autos to cellphones.
The deficit rose to $51.4 billion, the largest trade gap since October 2008 and more than 43 percent higher than the February imbalance, the Commerce Department reported Tuesday.
Exports were up 0.9 percent to $187.8 billion, while imports increased 7.7 percent to $239.2 billion. The trade deficit is the short-fall between exports and imports.
Economists had expected the March deficit to expand, reflecting the resolution of labor disputes which had slowed shipments at West Coast ports. But the deficit was bigger than expected and will likely shrink an already anemic first quarter of economic growth.
The government reported last week that the overall economy, as measured by the gross domestic product, grew a tiny 0.2 percent. A disappointing trade deficit was already estimated to have cut 1.25 percentage points from first quarter growth. But the March performance could send GDP into negative territory.