No Stopping the Trade Deficit
The nation's trade deficit expanded in January, led by increased imports of consumer goods.
The gulf between exports and imports swelled to $58.5 billion, up from December's $56.4 billion hole and the second worst on record, the government said. Economists expected a deficit of $56.8 billion.
Exports edged up $0.4 billion, while imports rose $2.9 billion. Both hit record levels.
The data, which measure the flow of goods and services, is likely to be seen as another warning sign about the health of the economy. Economists say the ever-widening deficit is worrisome because it exports U.S. capital, as consumers and businesses suck up goods and services from abroad. The dollar weakened on the news.
The U.S. continued to run deficits with many of its largest trading partners. The deficit with China rose from $14.3 billion to $15.3 billion, as did the trade gap with OPEC, which increased from $5.8 billion to $6.1 billion.Deficits with both the European Union and Japan fell because of the weakening dollar.