U.S. Trade Gap Widens At Record Pace

AP ^ | Thu, 05/10/2012 | Martin Crutsinger, AP Economics Writer

[robowombat]

WASHINGTON (AP) -- The U.S. trade deficit rose in March at the fastest rate in 10 months. A rise in consumer goods lifted imports to a record level, outpacing a solid gain in U.S. exports.

The Commerce Department said Thursday that the trade gap widened to $51.8 billion in March, up from $45.4 billion in February. Imports rose 5.2 percent to a record $238.6 billion, reflecting more foreign oil, autos, cell phones and clothes.

Exports increased nearly 3 percent to $186.8 billion. Sales to Europe reached an all-time high despite the region's debt crisis.

Economists caution that export growth, a bright spot for the U.S. economy, could slow in coming months if more European countries fall into recession.

The 14 percent rise in the U.S. trade deficit from February to March was the sharpest one-month increase since a 16 percent jump last May.

For the year, the trade deficit is running at an annual rate of nearly $600 billion. That's about 7 percent more than last year's gap.

A rising trade deficit slows a nation's growth. It means the country is spending more on foreign-made products than it is taking in from sales of U.S.-made goods.

[pieceofthepuzzle]

I was out shopping for clothes recently (not a common occurrence, as I hate it) and asked specifically for things made in the USA, or from from a European country I know has high quality clothing (e.g. Italy). I specially wanted to avoid things made in China. There are items out there that fit the bill, but you have to look for them. Interestingly, the sales person at one store told me that a lot of people are asking to see labels for the same reasons. Unfortunately, it appears that some manufacturers are trying to avoid this labeling.

[Last Dakotan]

One sided "free trade" with Asia has resulted in a cancer on the US economy that drains it of life. The US economy won't return, no matter who is President, until this problem is fixed.

[Strategerist]

Actually this is probably a sign of the economy improving.

[Last Dakotan]

I don't completely disagree with you. Look, if the country was in a depression our goods import would be zero.

The wholesale movement of an entire vital sector of the economy to Asia has been devastating to America and will be a drag on the welfare of our children for generations to come.