US trade deficit bulges to record $46 billion in March

The US trade deficit mushroomed to a record 46.0 billion dollars in March, stunning analysts, as imports to the warming economy boomed, government data showed Wednesday.
The trade shortfall bulged 3.9 billion dollars from the previous month to a seasonally adjusted, unprecedented 46.0 billion dollars, the Commerce Department said.
Private economists had predicted a trade gap of 43 billion dollars.
But imports of a broad array of goods, particularly high-priced petroleum, took the steepest jump in 11 years, soaring 6.2 billion dollars, or 4.6 percent, to a record 140.7 billion dollars. Exports surged 2.4 billion dollars, or 2.6 percent, to 94.7 billion dollars, also a record.
"We are seeing the strength in the domestic side of the economy reflected in surging imports growth and, of course, higher oil prices are not helping out," said BMO Financial Group senior economist Sal Guatieri.
The United States imported record values of consumer goods, agricultural products, industrial supplies and automobiles in March.
The petroleum deficit widened 12.2 percent to a record 12.5 billion dollars as prices soared and the country raised imports to 331.6 million barrels from 287.8 million in February.
Bigger-than-anticipated imports may force the government to trim its first estimate of a 4.2 percent annual rate of economic growth in the first quarter, analysts said. Revised data are out May 27.
The brake would have to be either a weaker dollar or higher interest rates, and higher interest rates appeared a more likely option in the years ahead, he said.
Exports had held up well, Guatieri said.
A breakdown of the raw data by country showed:
-- With China, the US deficit surged 26.0 percent from the previous month to 10.4 billion dollars.
-- The shortfall in trade with Japan expanded 11.3 percent to 6.7 billion dollars, a three-year high.
-- With the European Union, the gap bulged 26.2 percent to a deficit of 9.3 billion dollars.
-- The US deficit with Canada expanded 1.1 percent to 5.1 billion dollars.
-- The deficit with Mexico widened 7.9 percent to 3.9 billion dollars.
-- The trade deficit with Hong Kong, South Korea, Singapore and Taiwan combined grew 37.5 percent to 800 million dollars.