Trade Deficit Widened in March

Washington, DC, May 12, 2009--The Commerce Department said Tuesday the trade deficit widened to $27.6 billion in March, slightly lower than the $29 billion gap that economists had forecast.

The March deficit was 5.5 percent higher than February's revised $26.1 billion trade gap, which had been the smallest since November 1999.

Through the first three months of this year, the deficit is running at an annual rate of $359.7 billion, far below last year's $681.1 billion. Economists expect the deficit will remain at low levels this year as a recession in the U.S. crimps demand for foreign goods.

The global downturn also has cut into sales of U.S. exports. That will limit the amount of improvement seen in the deficit, which is the difference between what America imports and what it sells abroad.

For March, exports of goods and services fell 2.4 percent to $123.6 billion, the lowest level since August 2006.

Imports declined 1 percent to $151.2 billion, the lowest level since September 2004.