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The numbers: The U.S. trade deficit rose 5.6% in March to a record $74.4 billion, reflecting a seemingly insatiable appetite among Americans for consumer goods such as toys, clothes, cell phones, home furnishings as the economy gains speed.
The trade gap widened from $71.1 billion in February , the government said Tuesday. Economists polled by Dow Jones and The Wall Street Journal had forecast the deficit to total $74.8 billion.
Imports jumped 6.3% in March to $274.5 billion.
Exports rose 6.6% to $200 billion.
Big picture: The U.S. trade deficit is on track to set another annual record in 2021 and is likely to remain extremely high until the global economy recovers.
How come? The strong rebound in the U.S. economy, driven in large part by massive federal stimulus, has boosted demand for imports.
Exports, on the other hand, have lagged behind owing to weak demand in other countries where coronavirus vaccinations have been much slower. A sharp drop in tourism has also reduced the usually large surplus in U.S. services.
A large trade deficit subtracts from gross domestic product, the official scorecard for the U.S. economy.
Market reaction: The Dow Jones Industrial Average
DJIA,
and S&P 500
SPX,
were set to open lower in Tuesday trades.
