A truck hauls shipping containers at Yusen Terminals (YTI) on Terminal Island at the Port of Los Angeles in Los Angeles, California, U.S., Jan 30, 2019. REUTERS/Mike Blake/File photo
WASHINGTON – 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 percent 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 percent of gross domestic product, down from 3.7 percent in 2022.
READ: US consumer spending fuels strong Q4 2023 GDP growth
Trade added 0.32 percentage point to the economy’s 3.2 percent 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-percent pace.
Capital goods
Imports increased 1.1 percent to $324.6 billion in January. Goods imports shot up 1.2 percent 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.
READ: US trade deficit rose marginally in Dec; narrowed sharply in 2023
Exports edged up 0.1 percent to $257.2 billion. Goods exports also nudged up 0.1 percent 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.