PiCK

US March Trade Deficit Widens to $60.3 Billion as Imports Outpace Exports

Source

Korea Economic Daily

Summary

The U.S. Commerce Department said the March trade deficit in goods and services widened 4.4%% from a month earlier to $60.3 billion.
U.S. imports rose 2.3%% in March, driven by increases in automobiles, consumer goods and capital-goods imports such as foreign-made computer equipment amid expanding artificial intelligence development.
Rising oil prices following the closure of the Strait of Hormuz are expected to lift U.S. crude exports, benefiting the oil and gas industry.

Forecast Trend Report by Period

The U.S. trade deficit widened in March as imports increased more than exports. Exports also rose as shipments of crude oil and petroleum products climbed after the start of the war with Iran.

The Commerce Department said May 5 that the goods and services trade deficit increased 4.4% from the previous month to $60.3 billion in March. That was slightly narrower than economists’ median estimate for a $61 billion deficit.

Bloomberg interpreted the increase in March imports as a sign of solid consumer and business demand.

Imports rose 2.3%, led by automobiles and consumer goods. Capital-goods imports also increased as demand for foreign-made computer equipment grew amid the expansion of artificial intelligence development.

Exports rose 2% from a month earlier in March, driven by higher shipments of crude oil and other petroleum products.

The March figures reflected oil-price volatility tied to the war with Iran and the closure of the Strait of Hormuz.

Higher oil prices after the Strait of Hormuz closure are expected to benefit the U.S. oil and gas industry by increasing crude exports. Data from the U.S. Energy Information Administration showed recent U.S. crude exports reached a record high. Brent crude, the international benchmark, has risen more than 50% since the war began on Feb. 28.

Kim Jung-a, guest reporter, Hankyung.com, kja@hankyung.com