Exports hit record, but March trade deficit widens on oil

Updated 2h 28m ago |

WASHINGTON (AP) — U.S. companies sold the most goods and services overseas on records dating back 15 years. But a big jump in oil prices pushed the nation's trade deficit higher in March.

The trade deficit rose 6% to $48.2 billion, the Commerce Department said Wednesday. That's the highest level since June 2010 and up from $45.4 billion in February.

Exports increased to $172.7 billion. The dollar's decline in recent months has made U.S. goods cheaper overseas, and exports have also risen because of rapid growth in developing countries.

However, oil imports soared to $39.3 billion, an 18% rise from the previous month. It was the highest level since August 2008 and reflects steep price increases, as well as greater demand.

The average price for a barrel of imported crude oil was $93.76 in March, up from $87.17 in February. Oil prices have risen even further since then, despite declines in recent weeks. Oil closed at about $104 per barrel on Tuesday.

The trade deficit with China, meanwhile, decreased to $18.1 billion. That's down slightly from $18.8 billion in February.

But it is expected to rise in the coming months. On Tuesday, China reported a big increase in its April trade surplus. Its imports fell while exports jumped 30%. That's likely to raise pressure on China to let its currency rise.

Thetrade gap between the two countries was a top issue in high-level meetings between U.S. and Chinese officials earlier this week, though little progress was made on the currency issue.

The devastating earthquake and tsunami in Japan on March 11 didn't impact U.S. trade figures. Imports from Japan rose by $1.3 billion and U.S. exports to that country also increased. But disruptions to Japan's auto production are likely to reduce U.S. imports in coming months, economists say.

U.S. companies sold more autos, industrial materials, and food and consumer goods in March. Auto and auto part exports rose to $11.6 billion from just below $10 billion in February.

In addition to oil, imports of computers, autos and auto parts, and aircraft rose in March.

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