The U.S. trade deficit rose in March at the fastest rate in 10 months, as an increase in consumer goods lifted imports to a record high, outpacing a solid gain in U.S. exports, the government reported Thursday. The Commerce Department said the trade deficit widened to $51.8 billion in March, up from $45.4 billion the previous month. Imports rose 5.2 percent to a record $238.6 billion, reflecting more foreign oil, autos, mobile telephones, and clothes. Exports increased almost 3 percent to $186.8 billion, with sales to Europe reaching a record high despite the region's debt crisis and economic stagnation. Economists have warned that U.S. export growth could slow in coming months if more European countries fall into recession. The 14 percent rise in the U.S. trade deficit from February to March was the sharpest one-month increase since a 16 percent jump last May. For the year, the trade deficit is running at an annual rate of almost $600 billion, or 7 percent more than last year's deficit. A rising trade deficit slows economic growth because it means the country is spending more on foreign-made products than it is earning from sales of U.S.-made goods. In March, the U.S. trade deficit with the 27-country European Union surged to $9.8 billion from $5.9 billion the previous month. The deficit widened even though U.S. exports to those countries rose 11.5 percent to a record $25.1 billion. Imports from Europe rose 22.7 to a record of almost $35 billion.
