The Commerce Department International Trade report for January shows the US trade deficit with the rest of the world increased to $-56.6 billion from a revised higher $55.1 billion in December.
- January exports were $200.9 billion, $2.7 billion less than December exports.
- January imports were $257.5 billion, down less than $0.1 billion from December imports.
- The January increase in the goods and services deficit reflected an increase in the goods deficit of $2.8 billion to $76.5 billion and an increase in the services surplus of $0.1 billion to $19.9 billion.
- Year-over-year, the goods and services deficit increased $7.9 billion, or 16.2 percent, from January 2017. Exports increased $9.7 billion or 5.1 percent. Imports increased $17.6 billion or 7.4 percent.
Exports of goods on a Census basis decreased $3.3 billion.
- Capital goods decreased $2.6 billion.
- Industrial supplies and materials decreased $1.3 billion.
- Other goods decreased $1.0 billion.
- Consumer goods increased $1.2 billion (Artwork, antiques, stamps, and other collectibles increased $0.5 billion. Pharmaceutical preparations increased $0.4 billion.)
We are exporting more antiques. Lovely. That will get the economy humming.
Imports of goods on a Census basis decreased $0.3 billion.
- Capital goods decreased $1.3 billion.
- Consumer goods decreased $0.9 billion. (Cell phones and other household goods decreased $1.2 billion).
- Industrial supplies and materials increased $2.0 billion.
Goods by Selected Countries and Areas
- The January figures show surpluses, in billions of dollars, with Hong Kong ($2.6), South and Central America ($2.4), Singapore ($0.9), Brazil ($0.5), and United Kingdom ($0.3).
- Deficits were recorded, in billions of dollars, with China ($35.5), European Union ($15.0), Germany ($6.3), Mexico ($5.6), Japan ($5.6), Italy ($2.8), OPEC ($2.5), India ($1.8), Taiwan ($1.5), Canada ($1.5), South Korea ($1.5), France ($1.4), and Saudi Arabia ($0.6).
The Econoday consensus was for the trade deficit to widen to $-55.1 billion from $53.1 billion. The consensus range was $-56.1 billion to $-52.8 billion. The report was outside the range. Trump will howl.
It's shocking, but somehow Econoday did not find hidden strength in antiques.
Let's invade Canada over that $1.5 billion. We need to go after Italian shoes too. To hell with it. Just stop all imports and export more antiques and drugs.
Mike "Mish" Shedlock