The U.S. Bureau of Economic Analysis in its report said that the U.S. trade deficit widened to a seasonally adjusted $44.5 billion in January from a deficit of $38.1 billion in December (which was revised downward from a previously reported deficit of $38.5 billion).
Analysts had expected the U.S. trade deficit to widen to $42.6 billion.
The January trade report showed that even though the U.S. has moved considerably towards being less import dependent on import of energy fuels thanks to the country’s treasure trove of shale gas reserves and improved drilling techniques — the domestic economy remains very much dependent on foreign petroleum.
The total U.S. imports of goods and services jumped 1.8% in January from the previous month, seasonally adjusted, entirely due to increases in crude oil and other petroleum-related products.
U.S. exports, meanwhile, fell 1.2% in January after surging 2.1% in the previous month. Here too the drop was related largely to energy – the U.S. shipped less fuel oil and other industrial supplies.
American exports of other major categories, including farm items, cars and capital goods such as industrial machines, rose a tiny bit over the month.
The January exports of $184.5 billion and imports of $228.9 billion resulted in a goods and services deficit of $44.4 billion, up from $38.1 billion in
December, revised.
January exports were $2.2 billion less than December exports of $186.6
Billion, while imports were $4.1 billion more than December imports of $224.8 billion.
In January, the goods deficit increased $5.7 billion from December to $61.8 billion, and the services surplus decreased $0.6 billion from December to $17.3 billion.
Exports of goods decreased $2.0 billion to $130.8 billion, and imports of goods increased $3.6 billion to $192.5 billion.
Exports of services decreased $0.1 billion to $53.7 billion, and imports of services increased $0.5 billion to $36.4 billion.
Year on year basis goods and services deficit decreased $7.8 billion from January 2012 to January this year. Exports were up $5.8 billion, or 3.3 per cent, and imports were down $2.0 billion, or 0.9 per cent
The U.S. merchandise trade deficit with Europe rose to $9.7 billion in January from $9.3 billion in December. Those figures are not seasonally adjusted, but American exports to Europe, where many countries are in recession, were down about 5% in January compared with a year earlier.
America’s trade shortfall with China widened to $27.8 billion in January, from $24.5 billion in December and $26 billion in January 2012.
Making its own seasonal adjustments, Capital Economics said that it appears that the bilateral trade deficit with China hit a new record in January.
Paul Ashworth, an economist at Capital Economics, cautioned against reading too much into monthly data that can be volatile and especially Chinese trade flows around the Lunar New Year holiday season.
Still, he said, “at face value it doesn’t suggest that onshoring” — bringing back manufacturing from overseas to the U.S. — “is gaining much traction.”
The official data for the three months ending in January shows exports of goods and services averaged $184.5 billion, while imports of goods and services averaged $228.1 billion, resulting in an average trade deficit of $43.6 billion.
During the October-December quarter, the average trade deficit was $42.8 billion, reflecting average exports of $183.1 billion and average imports of $226.0 billion.
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