Economists expected the trade gap to increase, but the results were even worse, with falling exports the main culprit.
The Commerce Department International Trade report for January shows the US trade deficit with the rest of the world increased to $-56.6 billion from a revised higher $55.1 billion in December.
Trade Highlights
January exports were $200.9 billion, $2.7 billion less than December exports.
January imports were $257.5 billion, down less than $0.1 billion from December imports.
The January increase in the goods and services deficit reflected an increase in the goods deficit of $2.8 billion to $76.5 billion and an increase in the services surplus of $0.1 billion to $19.9 billion.
Year-over-year, the goods and services deficit increased $7.9 billion, or 16.2 percent, from January 2017. Exports increased $9.7 billion or 5.1 percent. Imports increased $17.6 billion or 7.4 percent.
Goods Exports
Exports of goods on a Census basis decreased $3.3 billion.
Capital goods decreased $2.6 billion.
Industrial supplies and materials decreased $1.3 billion.
Other goods decreased $1.0 billion.
Consumer goods increased $1.2 billion (Artwork, antiques, stamps, and other collectibles increased $0.5 billion. Pharmaceutical preparations increased $0.4 billion.)
We are exporting more antiques. Lovely. That will get the economy humming.
Goods Imports
Imports of goods on a Census basis decreased $0.3 billion.
Capital goods decreased $1.3 billion.
Consumer goods decreased $0.9 billion. (Cell phones and other household goods decreased $1.2 billion).
Industrial supplies and materials increased $2.0 billion.
Goods by Selected Countries and Areas
The January figures show surpluses, in billions of dollars, with Hong Kong ($2.6), South and Central America ($2.4), Singapore ($0.9), Brazil ($0.5), and United Kingdom ($0.3).
Deficits were recorded, in billions of dollars, with China ($35.5), European Union ($15.0), Germany ($6.3), Mexico ($5.6), Japan ($5.6), Italy ($2.8), OPEC ($2.5), India ($1.8), Taiwan ($1.5), Canada ($1.5), South Korea ($1.5), France ($1.4), and Saudi Arabia ($0.6).
