Trade Deficit in the U.S. Widens to One-Year High

The trade deficit in the U.S. widened in April to the highest level in more than a year as exports fell more than imports.

The gap grew 0.6 percent to $40.3 billion, the most since December 2008, Commerce Department figures showed today in Washington. The increase signals trade will subtract from economic growth this quarter.

The fallout from the European debt crisis may keep limiting trade flows in coming months as the subsequent plunge in oil prices restrains imports. The increase in the value of the dollar since the turmoil began also makes American goods less competitive abroad, raising the risk the gains in exports that have helped lift companies like Dow Chemical Co. will cool. (more)