The US trade deficit expanded more than analysts anticipated in January, government data showed on Thursday, reaching the widest in nine months on a solid gain in imports.
The overall gap came in at $67.4 billion, after a $64.2 billion figure in December last year, according to the Commerce Department.
Consumption has helped to support US trade, although analysts had expected higher interest rates to weigh on demand and add pressure on imports.
To rein in stubborn inflation, the Federal Reserve lifted interest rates to the highest in more than two decades and kept them elevated, while all eyes are now on when the first rate cut might take place.
US imports jumped 1.1 percent from December to $324.6 billion in January, according to the latest Commerce Department report.
In particular, upticks were logged in goods such as computers and semiconductors, as well as auto vehicles and parts.
Exports edged up 0.1 percent between December and January, to $257.2 billion.
Among categories, auto vehicle and parts picked up as well, while exports of industrial supplies such as crude oil slipped.
The goods deficit with China came in at $22.9 billion, above that with the European Union and Mexico.
Economist Rubeela Farooqi of High Frequency Economics expects trade will be a “small drag” on growth in the first quarter.
“The outlook for trade flows going forward is likely one of moderation given expectations of slower global demand and growth going forward,” she added in a note.
The US trade deficit narrowed in 2023 to the smallest in three years, according to government data released last month.
