As Expected, U.S. Trade Deficit Increases In January

By John S. McClenahen With exports falling and imports rising, the U.S. trade deficit in goods and services grew by $3.8 billion in January to $28.5 billion. The deficit in December 2001 was $24.7 billion, according to revised figures from the U.S. ...
Jan. 13, 2005
ByJohn S. McClenahen With exports falling and imports rising, the U.S. trade deficit in goods and services grew by $3.8 billion in January to $28.5 billion. The deficit in December 2001 was $24.7 billion, according to revised figures from the U.S. Department of Commerce. U.S. exports decreased $100 million in January to $78 billion. Exports of consumer items, industrial supplies and other goods totaled $54.8 billion in January, down $200 million from December, while exports of U.S. services were basically unchanged at $23.1 billion. U.S. imports rose to $106.5 billion in January, a $3.7 billion increase from the $102.8 billion recorded in December. Imports of goods were up $3 billion to $89.5 billion, while imports of business and other services rose $800 million to $17.6 billion in January. "It appears that the deterioration in net exports for the first quarter [of 2002] should reduce real GDP growth by over one percentage point," says Stan Shipley, a senior economist at Merrill Lynch & Co., New York. "However," he interjects, "other components of the economy are quite robust. We project first-quarter GDP should post a gain between a 5% and 6% [annual] rate, not bad for the first quarter of recovery."
Sign up for IndustryWeek Newsletters
Get the latest news and updates.

Voice Your Opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!