The U.S. Commerce Department reported on Tuesday that U.S. the goods and services trade deficit widened to $44.4 billion in March from a revised $39.8 billion in the previous month (originally a gap of $39.9 billion).

Economists had expected a deficit of $44.0 billion.

According to the report, the March advance in the goods and services deficit reflected an increase in the goods deficit of $4.6 billion to $65.6 billion and a decline in the services surplus of $0.1 billion to $21.2 billion.

Exports of goods and services from the U.S. fell 9.6 percent m-o-m to $187.7 billion in March, while imports dropped 6.2 percent m-o-m to $232.2 billion, in part, due to the impact of COVID-19, as many businesses were operating at limited capacity or ceased operations completely, and the movement of travelers across borders was restricted.

Year-to-date, the goods and services deficit tumbled 17.8 percent from the same period in 2019. Exports decreased 3.5 percent, while imports dropped 6.4 percent.