Trade Deficit Rises as Exports, Imports Both Gain

The monthly U.S. trade deficit in goods and services saw a small 1.6 percent increase in January 2023 as both imports and exports increased. “A resilient domestic economy helped bolster demand for imports,” a Bloomberg article said, “while a months-long slide in the dollar likely helped drive overseas purchases of American-made goods.”

Imports gained 3.0 percent from December to $325.8 billion. Imports of goods were up 3.7 percent to $267.9 billion, with increases of $1.4 billion for trucks, buses, and special-purpose vehicles, $1.4 billion for passenger cars, and $900 million for drugs. Services imports inched ahead 0.2 percent to $57.9 billion.

Exports rose 3.4 percent in January to $257.5 billion. Exports of goods jumped 6.0 percent to $177.8 billion, with increases of $2.8 billion for drugs, $700 million for auto parts and accessories, and $500 million for civilian aircraft. Services exports slipped 2.0 percent to $79.7 billion.

With exports and imports both up, the monthly U.S. trade deficit increased from $67.2 billion in December to $68.3 billion in January. The deficit in goods trade was down 0.7 percent to $90.1 billion while the services trade surplus tumbled 7.2 percent to $21.8 billion.