May 12, 2004
By Greg Robb, CBS.MarketWatch.com

WASHINGTON (CBS.MW) - Records fell by the wayside in March, but the underlying story of the U.S. trade sector did not change as the appetite of U.S. consumers for foreign goods pushed the deficit into uncharted territory.

The U.S. trade deficit widened 9.1 percent in March to a record $46.0 billion, the Commerce Department reported Wednesday.

The trade deficit was well above the consensus forecast of Wall Street economists for a deficit of $43.0 billion.

The deficit had narrowed 3.1 percent to $42.1 billion in February.

Both imports and exports rose to record levels in March, but imports rose faster than exports.

Imports of goods and services rose 4.6 percent to a record $140.7 billion. This is the largest monthly surge in imports since March 1993.

The U.S. imported a record amount of goods from Canada, Mexico, South/Central America, and OPEC in March, the department said. Imports from Japan were at their highest level in three years.

Exports of goods and services rose 2.6 percent to a record $94.7 billion.

Exports of goods alone rose 3.5 percent to a record $68.4 billion.

The increase was widespread, with exports of industrial supplies, autos, and consumer goods setting record highs. U.S. exports of capital goods were the highest since May 2001.

Exports of civilian aircraft fell 3.8 percent to $2.1 billion.

Imports of goods alone rose 5.4 percent in March to a record $118.4 billion.

The U.S. imported a record amount of consumer goods, agricultural products, industrial supplies and autos in March.

The U.S. petroleum deficit widened 12.2 percent to a record $12.5 billion.

The value of U.S. crude imports surged to $10.2 billion in March from $8.4 billion the previous month.

The U.S. imported 331.6 million barrels in March or 10.7 million per day, up from 287.8 million or 9.9 million per day in February. The average price per barrel rose to $30.64 from $29.17 in February. This is the highest monthly average price since February 1983.

The U.S. trade deficit with China widened to $10.4 billion in March compared with $7.7 billion in the same month last year. The U.S. exported a record $3.4 billion worth of goods to China in March.

The U.S. trade deficit with OPEC widened to a record $5.6 billion in March compared with $5.0 billion in the same month last year.
Greg Robb is a senior reporter for CBS MarketWatch based in Washington.

http://cbs.marketwatch.com/news/story.asp?guid=%7BEDF81B11%2DAAED%2D42DA%2DB0B6%2D707A72D67E56%7D&siteid=mktw