The U.S. trade deficit increased slightly in January 2008, up 0.6% to $58.2 billion, as oil prices pushed the gap higher, despite an increase in exports, the U.S. Commerce Department announced Tuesday.
Analysts surveyed by Bloomberg News had expected the trade deficit to total $59.5 billion in January 2008.
Meanwhile, the December 2007 trade gap was revised lower to $57.9 billion from $58.8 billion, the Commerce Department said.
In January 2008, exports increased to $148.2 billion while imports rose to $206.4 billion. Exports for oil, industrial supplies, and consumer goods among others increased, while imports for oil and autos also increased. The oil import component was magnified by the rise in the price of oil.
Economic Analysis: In all, a luke-warm January 2008 trade deficit report. Exports continue to increase, aided by the weak dollar. Meanwhile, if one factors out the higher oil price, the import total would have been considerably lower. Still, the $58.2 billion monthly trade gap remains too high from a balance-of-payments standpoint, hence the nation must do more to lower its consumption of foreign goods.
U.S. trade deficit increases in January, better than expected
Posted Mar 11th 2008 10:22AM by Joseph Lazzaro
Filed under: International markets, Other issues, Economic data
Will Rich Ross really have a positive impact on Disney's movie operations?
Consumers sick of recession, may spend extra on holidays
Corrections, seasonality and Santa Claus
Reader Comments (Page 1 of 1)
3-11-2008 @ 11:00AM
Michael Schneider said...
Oil seems to be an important factor especially as the price has risen. The price hasn't had that much impact on demand until recently in part because so many people have money to pay for excessive oil use. I support raising the oil tax and providing a tax rebate to lower driving. It would also be god to lower the speed limit. If you have a tax rebate for low mileage driving it would put in some incentive beyond high prices to help drivers cut consumption. The benefits would go beyond just price rises or higher taxes alone which have not been that effective. There would also be an impact from such action on some of the speculation which has sent oil skyrocketing.