US trade deficit widens in January on imports

WASHINGTON – The U.S.widened sharply inamid a jump in goods, a trend that if it persists could seesubtracting from economic growth this quarter.

Theincreased 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 thegap rising to $64.2 billion instead of $62.2 billion as previoly reported. Thenarrowed 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

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

increased 1.1 percent to $324.6 billion in. Goodsshot up 1.2 percent to $263.4 billion.

of capital goods as well as those of motor vehicles parts and engines were the highest on record, which bodes well for biness investment on equipment. Servicesrose $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.