Record deficit in March

The U.S. trade deficit surged to a record $74.4 billion in March as an improving U.S. economy drove purchases of imported foreign goods.

The deficit, the gap between what America buys from abroad and what it sells to other countries, was 5.6% greater than the February gap of $70.5 billion, the Commerce Department said in a report Tuesday.

Imports rose 6.3% to $274.5 billion while exports increased 6.6% to $200 billion.

The U.S. imports so much more than it exports that in dollar terms, the rise in imports was greater.

The politically sensitive trade deficit with China rose 11.6% to $27.7 billion which, as usual, was the largest deficit with any single country.

The U.S. economy is recovering much faster than the rest of the world and that is playing out in trade numbers as the gap widens.

Americans are starting to spend again, while U.S. exporters are facing sluggish overseas demand in nations slower to recover.