The U.S. trade deficit widened in March as an artificial intelligence investment boom pulled in imports, more than offsetting an increase in exports, which were partly boosted by petroleum shipments amid the Middle East conflict.
The trade gap increased 4.4% to $60.3 billion, the Commerce Department's Bureau of Economic Analysis and Census Bureau said on Tuesday. Economists polled by Reuters forecast the trade deficit rising to $60.9 billion in March. Get a daily digest of breaking business news straight to your inbox with the Reuters Business newsletter. Sign up here.
Trade subtracted 1.30 percentage points from gross domestic product growth in the first quarter. The economy grew at a 2.0% annualized rate last quarter. Imports increased 2.3% to $381.2 billion in March. Goods imports rose 3.6% to $302.2 billion, boosted by a surge in capital goods to a record high of $120.7 billion.
Exports increased 2.0% to a an all-time high of $320.9 billion. Goods exports surged 3.1% to a record high $213.5 billion amid a rise in the shipments of petroleum. The U.S.-Israeli war with Iran, which has disrupted oil shipments and raised crude prices, will likely further boost petroleum exports in the months ahead. The U.S. is a net oil exporter.
