A US government report shows that the country's trade gap widened in March for the first time in seven months. This came as exports fell 2.4% and imports dropped for the eighth consecutive month.
The trade gap grew to $27.6 billion, from an upwardly revised estimate of $26.1 billion in February, which was the lowest since November 1999.
March was the first time the trade gap had expanded in seven months, but analysts had expected it to widen even more to $29 billion.
In a sign that US demand remained weak in the first quarter, US imports of goods and services fell 1% in March to $151.2 billion, the lowest since September 2004. Imports of goods were the lowest since April 2004.
But the 1% import drop in March was smaller than previous monthly declines since July, suggesting the drop-off in demand could be nearing a bottom. Low oil prices also continued to hold the value of imports in check, even though average prices jumped more than $2 per barrel in March to $41.36 per barrel.
US exports tumbled in March to $123.6 billion, after rising for one month in February. The March downturn resumed a trend dating back to July. Overall goods exports were the lowest since February 2006 while exports of capital goods were the lowest since October 2005.
US exports to China grew 19% in March to $5.6 billion, the highest in five months. However, US imports from China also increased and the politically sensitive trade gap with that country grew to $15.6 billion in March.
