U.S. Trade Deficit Increases as Commodities Imports Hit Record High.

U.S. Trade Deficit Increases as Commodities Imports Hit Record High.


The United States’ import/export imbalance expanded in January as products imports leapt to a record high in the midst of a sharp bounce back in consumer spending, counterbalancing a continued recovery in exports.

 

The Commerce Department said on Friday that the trade gap rose 1.9% to $68.2 billion in January. Market analysts surveyed by Reuters had figure a $67.5 billion shortage in January.

 

Products imports progressed 1.6% to $221.1 billion, the most noteworthy on record. Purchaser spending expanded by the most in seven months in January, supported by government checks to low-pay family units as a feature of almost $900 billion in extra COVID-19 pandemic relief.

 

The surge in demand also reduced inventories at retailers in January, according to an advance estimate published by the government last week. Lean inventories and anticipated strong domestic demand as new coronavirus cases decline and the pace of vaccinations accelerates, suggest imports will continue to rise.

 

Exports of goods gained 1.6% to $135.7 billion. Trade has subtracted from gross domestic product growth for two straight quarters.

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