The US trade deficit rose by $2.8bn to $48.2bn in March, in an indication of how surging oil prices are holding back the economy.
Greater imports of oil and a $6 increase in the price per barrel added $5.8bn to the deficit. That overshadowed a solid 4.6 per cent rise in exports, which finally recovered to their pre-recession level.
Despite strong demand from the developing world, which is increasing US exports, net trade is not adding to US growth, because the revenues are going to import more expensive oil.
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