CST:28/07/2016 17:20:54   

US trade gap widens to $45.7 billion in January

145 Days ago

WASHINGTON (AP) : The U.S. trade deficit rose in January as American exports fell for a fourth straight month, the Commerce Department said Friday.
The gap between exports and imports climbed to $45.7 billion in January from a revised $44.7 billion in December. Exports of goods and services fell 2.1 percent in January to $176.5 billion, lowest since June 2011. Exports of industrial equipment and supplies were down. American exporters have been hurt by weakness around the world and by a strong dollar that makes U.S. products more expensive overseas.

The high dollar should be helping imports by making them cheaper in America. But imports slid 1.3 percent $222.1 billion in January, lowest since April 2011. Lower oil prices explain part of the drop. Petroleum imports of $11.2 billion were the lowest since November 2003. But January imports of autos and auto parts hit a record $30.6 billion.

The deficit in the trade of goods with China rose to $31.1 billion in January from $29.7 billion. The goods gap with the European Union dropped to $12.6 billion from $13.3 billion in December.

Increasing trade deficits drag down U.S. gross domestic product — the broadest measure of economic output. Last year, the gap between exports and imports shaved more than 0.6 percentage points off annual GDP growth of 2.4 percent.

Viewed 118 times
You might also want to read