Robust imports push U.S. trade deficit to record high in March

div classBodysc17zpet90 cdBBJodivpWASHINGTON Reuters – The U.S. trade deficit surged to a record high in March, confirming that trade weighed on the economy in the first quarter and could remain a drag for a while as businesses replenish inventories with imported goods.p

pThe Commerce Department said on Wednesday that the trade deficit accelerated 22.3 to 109.8 billion in March amid a record increase in imports. Economists polled by Reuters had forecast a 107 billion deficit. pdivdivdiv classBodysc17zpet90 cdBBJodiv

pThe government reported last week that a record trade deficit sliced 3.20 percentage points from gross domestic product in the first quarter, resulting in GDP contracting at a 1.4 annualized rate after growing at a robust 6.9 pace in the fourth quarter. p

pTrade has subtracted from GDP for seven straight quarters. Imports of goods and services jumped 10.3 to 351.5 billion, outpacing a 5.6 rise in exports to 241.7 billion.p

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pp Reporting by Lucia Mutikani Editing by Andrew Heavensp

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