US Jan trade deficit above expectations
The US trade deficit rose 4.5% month-on-month to $58.3 billion in January, the US Commerce Department announced today. Economists had been expecting a slightly lower trade deficit closer to $56.5 billion. December's trade deficit was revised from $56.4 billion down to $55.7 billion. Imports rose 1.9% to a record $159.1 billion in January, while exports gained 0.4% to a record $100.8 billion. Strong economic growth affected the deficit's increase. The US economy is growing faster than either the UK or Japan. The rise in imports was mainly due to a 6% increase in consumer goods. The $19.7 billion in auto imports and $34.6 billion in consumer goods were records. Clothing imports rose 9.3%. The US trade deficit with China surged $1 billion to $15.3 billion as exports plunged 20%. The trade deficit with Canada widened to $6.2 billion. Trade deficits with the European Union, Mexico and Japan fell in January.