January sees a 5% expansion in US trade deficit due to an import surge

Posted on March 8, 2024

In January, the US trade deficit grew more than expected, driven by increased imports, while exports saw minimal changes.

The deficit in goods and services expanded by 5.1% to $67.4 billion, the largest since April.

Imports rose by 1.1%, reaching their highest level in a year, led by capital goods and cars, while exports increased by only 0.1%.

When adjusted for inflation, the merchandise trade deficit in January reached its highest level in three months, totaling $86 billion.

Last year saw the most substantial reduction in the trade deficit since 2009, making this recent expansion noteworthy.