–March Gap Largest Since Dec’08; Exports, Imports High Since Oct’08
–Nonpetroleum Goods Gap Narrowed, Services Surplus Up

By Kevin Kastner

WASHINGTON (MNI) – The U.S. international trade gap widened to
$40.4 billion in March on solid gains in both imports and exports, data
released by the Commerce Department Wednesday morning showed.

The trade gap, which was smaller than the $41.0 billion expected,
was due in large part to a sharp increases in both the price and
quantity of energy good imports. However, there were notable gains in
variety of import and export categories that led to the largest totals
for imports and exports since October 2008.

The petroleum goods gap widened to $24.8 billion in March from
$23.0 billion in February. Unadjusted gains in both volume and price of
crude oil imports rose sharply, while adjusted crude oil imports
accounted for $2.8 billion of the $6.0 billion gains in total imports.

However, the nonpetroleum goods gap actually narrowed slightly due
to a strong export increase in the month. Combined with a larger
services surplus, that suggests that the overall gap would have actually
narrowed excluding petroleum goods.

The unadjusted crude oil barrel price rose to $74.32, the highest
since October 2008, while the volume of crude oil imports rose to 299.5
million.

Other imports categories also posted solid gains, particularly auto
imports. At the same time, exports of industrial supplies, which include
some energy products, and consumer goods posted solid gains.

The unilateral trade deficits with most major trading partners
widened in the month, including China, Japan, and the EU countries.

** Market News International Washington Bureau: 202-371-2121 **

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