Surprise widening in US trade gap

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The US trade deficit widened unexpectedly in February, despite the first fall in oil imports in a year.

The trade deficit increased by 5.7% to $62.3bn, the Commerce Department said.

An increase in imports of foreign cars was largely responsible, offsetting the first narrowing in the petroleum deficit for eight months.

The deficit is expected to fall this year as the US downturn reduces spending on imports while the weak dollar makes exports cheaper.

The politically-sensitive trade deficit with China narrowed 9.6% to $18.4bn, the lowest level for a year.

The deficit with China was reduced by big cuts in imports of computers, mobile phones and clothing.