The trade deficit for the U.S. with the rest of the world was up at the end of the first quarter on higher oil prices, although the weak dollar pushed exports to the highest level on record, according to Reuters. On Wednesday, the Commerce Department reported that the U.S. trade deficit grew to $48.2 billion in March, marking the highest level in nine months. Imports were up b y 5% due to surging oil prices, while exports grew 4.6% in March to reach $172.7 billion. That figure beat July 2008 to mark the highest level in history and the monthly represented the largest such surge in 17 years.
Although the overall trade deficit increased, the strong export growth was met with enthusiasm by economists such as Paul Dales of Capital Economics who said, “It’s taken two-and-a-half ears, but the level of exports has finally returned to pre-recession levels.” Chris Low of FTN Financial pointed out that exports have grown in four of the past five months, and are now 15% higher year-over-year. U.S. imports were at the highest level since August 2008, and Dales said, “The latest surveys suggest that export growth will continue to accelerate,” adding, “But the surveys suggest that imports will continue to grow at a faster rate.”