The US trade deficit narrowed sharply in January, driven by rising exports.
The Commerce Department reported Wednesday that the US trade deficit fell to $54.5 billion in January. This represents a decrease of $18.4 billion, or 25.3%, from December. The figure also came in below economists' forecast of a $67 billion deficit, according to Dow Jones estimates.
Exports rose to $302.1 billion, up $15.8 billion or 5.5% from the previous month. Imports declined $2.6 billion, or 0.7%, to $356.6 billion, contributing to the narrower trade gap.
The goods deficit shrank by $17.5 billion to $81.8 billion. The services surplus expanded by $1 billion to $27.3 billion.
By country, Vietnam accounted for the largest goods deficit at $19 billion. Taiwan followed at $17.3 billion, Mexico at $12.8 billion, China at $12.5 billion, and the European Union at $6.1 billion.
