March Trade Deficit Rise on Oil Imports

123jump.com Staff
12 May, 2009
New York City

The U.S. trade deficit in March edged up after weakening in February. Rising energy import prices and stubborn deficit with China, EU, OPEC, Japan and Mexico contributed to the persistent deficit.

[R]10:45 AM New York – Trade deficit in March edged up after weakening in February. Rising energy import prices and stubborn deficit with China, EU, OPEC, Japan and Mexico contributed to the persistent deficit.[/R]

Exports of goods in March declined more than imports from February month, lifting the trade deficit to $27.6 billion from $26.1 billion in February. Rising petroleum prices in March also contributed to the trade deficit.

U.S. exports in March fell $3 billion to $123.6 billion and imports declined $1.6 billion to $151.2 billion.

In March, the goods and services deficit decreased $29.8 billion from March 2008. Exports were down $26.0 billion, or 17.4%, and imports were down $55.9 billion, or 27%. Trade deficit in March was nearly cut in half after hovering near $60 billion in March 2008 and 2007 on record high oil prices and other imports.

In the first quarter the U.S. trade deficit declined to $90 billion from $178.4 billion in the quarter in 2008 and $179.5 billion in the quarter in 2007.

China led all nations and regions with deficit of $15.6 billion in March followed by deficits with European Union of $4.4 billion, with Mexico of $3.9 billion, Japan of $2.6 billion and OPEC of $2.4 billion.

U.S. registered the highest surplus with Hong Kong of $1.5 billion followed by surpluses with Australia of $1.1 billion and Singapore of 0.5%.

If the current trend in petroleum and minerals prices continues, trade deficit in the second quarter may rise again.