NATION

NATION

Trade deficit soars to highest level in a year

WASHINGTON — The trade deficit soared to the highest level in more than a year as an improvement in exports was swamped by record-high levels of imported crude oil. The deficit with China also rose sharply.

The gap between what the nation imports and what it sells abroad rose by 7.8 percent in April to $60.9 billion, the Commerce Department reported Tuesday. It was the largest imbalance since March 2007.

The higher deficit was driven by a $4.3 billion increase in crude oil imports, which jumped to a record $29.3 billion in April, as the average per-barrel price rose to an all-time high of $96.81.

Agencies expect housing downturn to continue

LOS ANGELES — Credit-rating agencies are betting that the housing downturn will deepen well into next year, dragging out home builders’ woes.

Fitch Ratings on Tuesday slashed its issuer default ratings for eight home builders, bumping three — Ryland Group Inc., D.R. Horton and Centex Corp. — into “junk” status.

Fitch said its ratings reflect its expectation that the housing slump will extend into next year and hurt prospects for a recovery in the home-building sector.

Associated Press