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The numbers: The trade deficit in goods rose 2% in January to a three-month high of $91.5 billion, reflecting high inflation as well as a steady U.S. appetite for new cars, food and consumer goods.
The trade gap in goods increased from $89.7 billion in the final month of 2022, the Census Bureau said.
Exports rose 4.2% and imports increased 3.4%.
The trade gap in goods has tapered off since hitting a record $125.3 billion last spring, but it’s still historically high. Large deficits subtract from gross domestic product, the official scorecard for the economy.
An advanced estimate of wholesale inventories, meanwhile, showed a 0.4% decrease in January. Retail inventories rose 0.3% in the month, according to an early estimate.
Big picture: The trade deficit has set fresh records for three years in a row, but it’s on track to narrow for the first time since 2019.
Still, the trade gap usually doesn’t reveal much about the true state of the economy. The U.S. has endured high deficits through expansions and recessions and they aren’t going away anytime soon.
Key details: Imports of goods rose to $265.3 billion in January.
Exports climbed to $173.8 billion. The U.S. exported more food, autos and consumer goods, mirroring the changes in imports.
Market reaction: The Dow Jones Industrial Average
DJIA,
and S&P 500
SPX,
were set to open higher in Tuesday trades.
