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US trade deficit widens in January on imports
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US trade deficit widens in January on imports
Mar 7, 2024 6:54 AM

WASHINGTON (Reuters) - The U.S. trade deficit widened sharply in January amid a jump in goods imports, a trend that if it persists could see trade subtracting from economic growth this quarter.

The trade deficit increased 5.1% to $67.4 billion, the Commerce Department's Bureau of Economic Analysis said on Thursday. Data for November was revised to show the trade gap rising to $64.2 billion instead of $62.2 billion as previously reported. The trade deficit narrowed to $779.8 billion in 2023 from $951.2 billion in 2022.

It represented 2.9% of gross domestic product, down from 3.7% in 2022. Trade added 0.32 percentage point to the economy's 3.2% annualized growth rate in the fourth quarter after being neutral for two straight quarters. Growth estimates for the first quarter are converging around a 2.0% pace.

Imports increased 1.1% to $324.6 billion in January. Goods imports shot up 1.2% to $263.4 billion.

Imports of capital goods as well as those of motor vehicles parts and engines were the highest on record, which bodes well for business investment on equipment. Services imports rose $0.5 billion to an all-time high of $61.3 billion.

Exports edged up 0.1% to $257.2 billion. Goods exports also nudged up 0.1% to $171.8 billion. Though capital goods exports were the highest on record, they were partially offset by a $1.4 billion decline in crude oil exports. Exports of services increased $0.2 billion to $85.4 billion, also a record high.

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