WASHINGTON — The United States posted a record trade deficit in March, reflecting Americans' voracious demand for foreign-made goods as well as the most expensive crude oil since 1983.
The $46 billion deficit reported Wednesday by the Commerce Department represented a hefty 9.1 percent increase from February's imbalance and came despite the fact that U.S. exports climbed to an all-time high in March.
"The economy is shifting into high gear and we're vacuuming up goods from around the world to support that growth," said Joel Naroff, president of Naroff Economic Advisors.
Imports of goods and services came to a record $140.7 billion in March, representing a 4.6 percent increase from the previous month. The strengthening U.S. economy stoked demand for imports. But the weaker value of the U.S. dollar, which makes imported goods more expensive in the United States, also played a factor in pushing up the total value of imports, said Mark Zandi, chief economist at Economy.com.
Exports, meanwhile, totaled $94.7 billion, also their best month on record. That marked a 2.6 percent advance from February. Exports were helped out by the weaker dollar, which makes U.S. goods cheaper for foreign buyers, and some pickup in overseas economies, economists said.
Even though exports gained ground in March, the yawning trade gap and the loss of U.S. jobs have been hot-button campaign issues that President Bush and presumptive Democratic presidential nominee John Kerry have jousted over.
Bush says the best way to handle the trade deficits is to get other countries to remove trade barriers and open their markets to U.S. businesses. But Kerry points to the deficits as evidence that the president's free-trade and economic policies aren't working.
In March, imports of automobiles and parts came to $19 billion, a record. Imports of consumer goods, including TVs, toys and clothing, totaled $31.3 billion, also an all-time high.
The United States' $5.6 billion trade deficit with oil-producing countries, including Saudi Arabia and Venezuela, was the highest on record. The average price of imported crude oil rose to $30.64 a barrel in March, the highest since February 1983, another factor in the swollen trade gap.
U.S. exporters, however, posted gains. Exports of U.S.-made cars and parts totaled $7.2 billion in March, a record. U.S. exports of consumer goods, including pleasure boats and tobacco products, also registered all-time highs in March, as did U.S. sales of industrial supplies.
"This is very good news indeed for manufacturers, who account for 80 percent of all goods exports," said David Huether, chief economist at the National Association of Manufacturers.