US trade gap widens for first time since July

I / Washington May 13, 2009, 9:37 IST

The US trade deficit increased in March for the first time in seven months as exports sank to a 2004 low amid the global economic crisis crippling trade, Commerce Department data showed.            

The March trade gap rose slightly to a seasonally adjusted $27.6 billion, from a revised $26.1 billion in February.            

That was narrower than analysts' consensus forecast of $29.0 billion.            

Imports fell for the seventh month in a row, to $151.2 billion, the lowest level since August 2006, the Commerce Department reported.            

Exports, which had increased in February, fell to $123.6 billion in March, a level last seen in September 2004.            

A higher imported oil bill and a sharp jump in the huge and politically sensitive trade gap with China factored into the gap increase.            

Separately, the government announced that Treasury Secretary Timothy Geithner would make his first official visit to China for talks June 1-2.            

The issues to be discussed would include "strengthening US-China economic ties to promote stable, balanced and sustained economic growth in the two nations."