• Trade Deficit Increases Again in January with U.S. imports at $231.6 billion

    Trade Deficit Increases Again in January with U.S. imports at $231.6 billion

    The U.S. Census Bureau and the U.S. Bureau of Economic Analysis announced that the trade deficit increased again in January to $39.1 billion with U.S. exports of $192.5 billion and U.S. imports of $231.6 billion. However, January exports exceeded December exports by $1.2 billion, but it wasn’t enough to move the needle as January imports were $1.3 billion more than December.

    The imports of goods is outpacing the exports of goods. However, according to the U.S. Census Bureau and U.S. Bureau of Economic Analysis, “the goods and services deficit decreased $3.0 billion from January 2013 to January 2014. Exports were up $5.7 billion and imports were up $2.6 billion.”

    U.S. exports increased in industrial supplies and materials, capital goods, and consumer goods when compared to the previous month. Conversely, exports decreased in foods, feeds, and beverages and automotive vehicles, parts, and engines. Compared to December, U.S. imports of industrial supplies and materials, capital goods, and foods, feeds, and beverages increased. For the same time period, imports of automotive vehicles, parts, and engines and consumer goods decreased. This decrease is likely explained by seasonal shopping trends after the holidays and decreased demand as a result of the extreme weather that affected much of the country.  Many retailers felt a drop off in consumer spending behavior because consumers did not want to venture out to shopping centers or retail outlets.

    Compared to January 2013, exports increased in industrial supplies and materials, capital goods, and foods, feeds, and beverages. U.S. exports decreased in consumer goods when compared to the same month last year. January 2014 saw increases in imports of capital goods, automotive vehicles, parts, and engines, foods, feeds, and beverages, and consumer goods.  When compared to the same month last year, U.S. imports of industrial supplies and materials and other goods decreased. According to the U.S. Census Bureau and the U.S. Bureau for Economic Analysis, “for three months ending in January, exports of goods and services averaged $192.8 billion, while imports of goods and services averaged $230.6 billion, resulting in an average trade deficit of $37.7 billion”.

    U.S. Department of Commerce

     

    Resource:

    U.S. Census Bureau and U.S. Bureau of Economic Analysis