US trade deficit widens by 15.4 per cent

The US trade deficit for goods and services widened more than anticipated to a seasonally adjusted $28

The US trade deficit for goods and services widened more than anticipated to a seasonally adjusted $28.5 billion in January from a revised $24.7 billion in December, the Commerce Department said today.

Wall Street economists had predicted the January deficit would increase to $27.1 billion.

In percentage terms, the trade deficit widened 15.4 per cent.

A significant increase in crude oil imports contributed to the widening trade deficit, but was offset somewhat by a large rise in civilian aircraft exports.

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In January, imports rose 3.6 per cent to $106.49 billion. Exports fell 0.1 per cent to $77.97bn in the same month.

The deficit with Japan narrowed to $4.8 billion in January from $5.87 billion a year earlier and 5.02 billion in December 2001. US exports to Japan were the lowest since January 1994.

The trade deficit with China narrowed to $6.9 billion in January from $7.23 billion a year earlier and $5.49 billion in December 2001.

The rise in imports in January was led by large increases in capital goods, consumer goods and crude oil.