US international trade balance for January -131.4B vs -127.4B estimate

• Prior month -$98.4B
• International trade balance (Goods and services) -$131.4B vs -$127.4B estimate
• Good trade balance for January -$155.57B vs -$153.2B preliminary. Last month -$122B

Details:

• January exports: $269.8B (+$3.3B from December)
• January imports: $401.2B (+$36.6B from December)
• Goods deficit: Increased by $33.5B to $156.8B
• Services surplus: Increased by $0.2B to $25.4B
• Year-over-year deficit: Increased by $64.5B (+96.5%)
• Year-over-year exports: Increased by $10.6B (+4.1%)
• Year-over-year imports: Increased by $75.2B (+23.1%)

Looking at the imports more closely:

• Imports of goods: Increased $36.2B to $329.5B in January
• Imports of goods on a Census basis: Increased $36.2B
• Industrial supplies and materials: Increased $23.1B
  • Finished metal shapes: +$20.5B
• Consumer goods: Increased $6.0B
  • Pharmaceutical preparations: +$5.2B
  • Cell phones & household goods: +$1.2B
• Capital goods: Increased $4.6B
  • Computers: +$3.0B
  • Computer accessories: +$1.2B
  • Telecommunications equipment: +$1.1B
• Net balance of payments adjustments: Decreased $0.1B
• Imports of services: Increased $0.4B to $71.7B in January
  • Charges for intellectual property: +$0.2B
  • Other business services: +$0.1B
  • Travel: -$0.1B

The goods trade deficit is soaring as companies adjust to the proposed tariffs. This could lead to choppy data going forward depending on how the economy reacts to a slower economy, inflation, uncertainty or to changes in policy too

This article was written by Greg Michalowski at www.forexlive.com.