Last updated: February 28, 2024 at 9:31 a.m. ET
First Published: February 28, 2024 8:32am ET
The numbers: The U.S. goods trade deficit widened 2.6% in January to $90.2 billion, according to preliminary estimates released Wednesday by the Commerce Department.
Economists polled by Econoday had expected the deficit to narrow to $88.1 billion.
Key details: Merchandise exports increased by $400 million to $170.4 billion in January. Imported goods…
Numbers: The U.S. goods trade deficit widened 2.6% in January to $90.2 billion, according to preliminary estimates released Wednesday by the Commerce Department.
Economists polled by Econoday had expected the deficit to narrow to $88.1 billion.
Main details: Merchandise exports increased by $400 million to $170.4 billion in January. Imports increased by $2.7 billion to $260.6 billion.
The report also showed wholesale inventories decreased by 0.1% in January. Additionally, advanced retail inventories increased by 0.5%. Retail inventories excluding automobiles increased by 0.3%.
Big picture: Exports soared in December, and economists had expected a slight rebound this month. The trade deficit narrowed significantly in 2023, contributing to boosting growth. Economists are watching to see whether geopolitical tensions will affect trade flows in the coming months.
what do they say? “Net trade is on track to depress gross domestic product slightly in the first quarter,” said Ian Shepherdson, chief economist at Pantheon Macroeconomics.
Market reaction: DJIA SPX stock was expected to open lower Wednesday. 10-year US Treasury yield BX:TMUBMUSD10Y
It fell to 4.29%.