U.S. trade deficit widens as goods imports hit record high
- Wall Street ends mixed despite bumper big-bank earnings
- Coinbase (COIN) Soars 52% in Public Debut
- Thermo Fisher Scientific (TMO) Nears Deal to Buy PPD, Inc. (PPD) for More Than $15 Billion -DJ
- JPMorgan (JPM) Reports a Q1 Beat on Revenue and Profit Fueled by Release of $5.2 Billion Reserved for Bad Loans; Shares Slightly Down
- Dell Technologies (DELL) Announces Planned VMware (VMW) Spin-Off
FILE PHOTO: Shipping containers are seen at the Port Newark Container Terminal in Newark, New Jersey, U.S. on July 2, 2009. REUTERS/Mike Segar/File Photo
News and research before you hear about it on CNBC and others. Claim your 1-week free trial to StreetInsider Premium here.
WASHINGTON(Reuters) - The United States' trade deficit increased in January as goods imports jumped to a record high amid a sharp rebound in consumer spending, offsetting a continued recovery in exports.
The Commerce Department said on Friday that the trade gap rose 1.9% to $68.2 billion in January. Economists polled by Reuters had forecast a $67.5 billion deficit in January.
Goods imports advanced 1.6% to $221.1 billion, the highest on record. Consumer spending increased by the most in seven months in January, boosted by government checks to low-income households as part of nearly $900 billion in additional 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.
(Reporting By Lucia Mutikani; Editing by Chizu Nomiyama)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- New York Fed's Williams: Fed has tools to deal with high inflation
- Televisa Univision venture aims for global Spanish streaming service
- Elon Musk's SpaceX raises $1.16 billion in equity financing
Create E-mail Alert Related CategoriesGeneral News, Reuters
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!