HONG KONG: The US trade deficit surged to its highest level in nearly 6 years in March as imports rebounded strongly after being held down by a labor dispute at key West Coast ports, suggesting growth contracted in the first quarter.
The Commerce Department said here the other day the deficit on the trade balance jumped 43.1 percent to US$51.4 billion (HK$400.9 billion), the largest since October 2008. It was the biggest percentage rise since December 1996.
February’s shortfall was revised to US$35.9 billion from a previously reported US$35.4 billion.
When adjusted for inflation, the deficit widened to US$67.2 billion in March, the largest in eight years, from US$51.2 billion the prior month.
March’s trade gap was far larger than the US$45.2 billion deficit the government assumed in its snapshot of first-quarter gross domestic product published last week.
In March, imports jumped 7.7 percent, the largest increase on record, to US$239.2 billion. Some of the imports likely ended up in inventories.
Imports of food and capital and consumer goods were the highest on record. Exports increased 0.9 percent to US$187.8 billion in March.
Exports to China increased 13.6 percent, while imports from China jumped 31.6 percent. That left the politically sensitive US-China trade deficit at US$31.2 billion, up 38.6 percent from February.
