Shipping containers sit stacked on a container ship docked at the Port of Oakland, California, on August 7, 2023. (Photo by Justin Sullivan/Getty Images)
The U.S. trade deficit widened in January by more than forecast, driven by a pickup in the value of imports while exports were little changed.
The shortfall in goods-and-services trade expanded 5.1 percent from the prior month, to $67.4 billion—the widest since April—Commerce Department data showed Thursday. The gap exceeded all estimates in a Bloomberg survey of economists. Last year, the deficit narrowed by the most since 2009.
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The value of imports rose 1.1 percent, to the highest level in a year, led by capital goods and motor vehicles. Exports edged up 0.1 percent. These figures aren't adjusted for inflation.
The outlook for trade is marked by various cross currents. The progress companies made last year getting inventories more in line with sales could lead to a pickup in demand for imports. At the same time, sluggish overseas economies risk restraining U.S. sales to overseas customers, even the dollar retreats from last year's high.
On an inflation-adjusted basis, the merchandise trade deficit increased to a three-month high of $86 billion in January. Prior to the current report, the Federal Reserve Bank of Atlanta's GDPNow forecast showed trade having little impact on first-quarter growth.
Digging Deeper
- Travel exports—or spending by visitors to the United States—edged up slightly, to the highest since December 2019.
- Travel imports—a measure of Americans traveling abroad—climbed to a fresh record.
- The U.S. merchandise-trade deficit with China widened slightly. The value of goods imported from China rose to a three-month high.
- The goods shortfall with Mexico shrank to the lowest level in three months.
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