US Trade Deficit Hits 5-Month High on Falling Exports


The US trade gap widened to USD 45.68 billion in January of 2016 from an upwardly revised USD 44.7 billion deficit in the previous month and above market expectations of USD 44 billion. Exports fell the most in six months, hitting the lowest in more than 5-1/2-year low and imports came back to contraction.

The increase in the goods and services deficit reflected a rise in the goods gap of $1.1 billion to $63.7 billion and an increase in the services surplus of $0.1 billion to $18.0 billion.

Total exports fell for the fourth straight month, down 2.1 percent to $176.46 billion. Sales of goods decreased $4.0 billion to $116.9 billion: capital goods declined $1.2 billion, industrial supplies and materials fell $0.9 billion, fuel oil dropped $0.7 billion and consumer goods decreased $0.8 billion.  Exports of services increased $0.2 billion to $59.6 billion: travel (for all purposes including education) increased $0.2 billion and transport, which includes freight and port services and passenger fares, increased $0.1 billion.

Total imports shrank 1.3 percent to $222.13 billion, following a 0.3 percent rise in the previous month. Purchases of goods decreased $2.9 billion to $180.6 billion: industrial supplies and materials decreased $2.1 billion, crude oil decreased $1.8 billion, capital goods decreased $1.2 billion and civilian aircraft decreased $0.9 billion. Imports of services increased less than $0.1 billion to $41.5 billion: other business services, which includes research and development services, professional and management services, and technical, trade-related, and other services, increased $0.1 billion and travel (for all purposes including education) increased $0.1 billion.

Year-over-year, the goods and services deficit increased $2.1 billion, or 4.8 percent, from January 2015. Exports decreased $12.5 billion or 6.6 percent. Imports decreased $10.5 billion or 4.5 percent.

US Trade Deficit Hits 5-Month High on Falling Exports


Census Bureau | Joana Taborda | joana.taborda@tradingeconomics.com
3/4/2016 2:09:01 PM