The
Commerce Department said on Friday the trade deficit dropped
6.7% to $45.3 billion also as exports fell.
Data for December was revised slightly to show the trade gap
widening to $48.6 billion instead of $48.9 billion as previously
reported.
Economists polled by Reuters had forecast the trade gap
tightening to $46.1 billion in January.
When adjusted for inflation, the goods trade deficit fell $2.3
billion to $77.7 billion in January.
While the smaller trade deficit would provide a boost to the
calculation of gross domestic product, declining imports mean
less inventory accumulation, which could offset the lift to GDP.
Falling imports are also likely to lead to shortages, which
could hurt both consumer and business spending.
The coronavirus epidemic has disrupted businesses and production
in China, with Beijing extending the Lunar Year holidays in an
effort to limit the spread of the virus.
Some factories that have restarted work are running below normal
capacity, which economists says will weigh on Chinese exports.
The politically sensitive goods trade deficit with China
increased 5.1% to $26.1 billion in January, with exports
tumbling 18.7% and imports falling 1.2%.
Trade added 1.5 percentage points to GDP growth in the fourth
quarter, exceeding the 1.17 percentage points contribution from
consumer spending, which accounts for more
than two-thirds of U.S. economic activity.
The economy grew at a 2.1% annualized rate in the fourth
quarter, matching the pace notched in the July-September period.
In January, goods imports fell 2.0% to $203.4 billion.
There were decreases in imports of industrial supplies and
materials, as well as imports of other goods.
Goods exports fell 1.0% to $136.4 billion in January.
There were decreases in exports of capital goods and industrial
supplies and materials. But motor vehicle and parts exports
increased.
(Reporting by Lucia Mutikani; Editing by Andrea Ricci)
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