The U.S. trade deficit rose sharply in March as imports hit an all-time high, suggesting solid demand in the steadily growing but modest economic recovery, official data showed Thursday.
The Commerce Department reported the U.S. trade gap widened to $51.8 billion in March, led by a 5% surge in imports.
The March trade shortfall was slightly bigger than analysts' average estimate of $50.2 billion.
But analysts pointed to the broad-based rise in imports as a positive signal of momentum in the world's largest economy, where consumer spending accounts for about 70% of activity.
"Imports have risen in four of the past five months, an indication of sturdy domestic demand," said Ryan Sweet at Moody's Analytics.
Robert Brusca, chief economist at FAO Economics, agreed.
"The trade number now puts last month's weak import figure behind us and makes it look more like domestic demand is growing," Brusca said.
The February gap was revised lower to $45.4 billion from a first estimate of $46.0 billion.
Choppy trade at the beginning of the year was mainly due to China's lunar New Year celebrations, which dramatically lowered Chinese imports to the United States in February.
Excluding China, the No. 1 exporter to the United States, the March trade deficit would have been more stable.
Petroleum imports also were volatile in the first quarter: less than $30 billion in February and more than $36 billion in January and March.
U.S. trade in March set new records, the Commerce Department said.
Imports hit an all-time high of $238.6 billion, and exports were at $186.8 billion.
U.S. goods and services exports through the first quarter of 2012 were up 8.2% or $41.6 billion from the same period of 2011 to reach $549.2 billion.
The March number marked the fourth consecutive month of export growth.
"This month's data show that U.S. exports have continued to increase this year, despite some tough economic conditions abroad, confirming the historic progress we are making on the path to achieving President Obama's goal of doubling exports by the end of 2014," Commerce Secretary John Bryson said in a statement.
The trade chief noted export growth had supported an additional 1.2 million American jobs since 2009.
Exports have been a bright spot in the struggling U.S. recovery following the 2008-2009 Great Recession that left unemployment painfully high.
"Strong imports point to an economy that is maintaining its forward momentum. You don't have robust capital equipment, consumer goods and vehicle imports if the economy is faltering," said Joel Naroff of Naroff Economic Advisors. "The rising exports will also generate a lot of new jobs."
The U.S. goods trade deficit widened mainly with the Europe Union, China and OPEC countries.
The United States posted record goods exports to Canada, its largest trade partner, and imported goods from its northern neighbor at the highest level since September 2008. The gap widened to $3.06 billion.
Goods trade with the European Union -- in both imports and exports -- also set record highs.
But the politically sensitive gap with China ballooned to $21.67 billion from $19.36 billion in February.
Critics accuse China of keeping its yuan currency undervalued to make its exports cheap, gaining a trade advantage.
The Obama administration has pressed the Chinese government to allow the yuan to appreciate. While Beijing has made recent progress in widening its currency trading ban, the administration says more needs to be done to level the playing field in international trade.
The US trade deficit is now hovering around the $45 billion level seen in mid-2011, after falling to $43.1 billion in October. Since then, it has widened substantially under the effect of rising oil prices.
That trend continued in March, with the price of a barrel of imported crude oil at $107.95, compared with $103.63 in February.
Still, the U.S. trade gap levels are well below the record $67.4 billion reached in August 2006.
Copyright, Agence France-Presse, 2012
