US trade deficit shrinks as cars and oil imports fall

March 11, 2010 | Posted by Dr Search- Principal Consultant at the Search Clinic

The US trade deficit fell unexpectedly in January, following a big drop in imports of oil and foreign cars.

The US Commerce Department said the trade gap was a seasonally adjusted $37.3bn (£24.9bn), 6.6% lower than the revised December figure of $39.9bn. Imports dropped 1.7%, with crude oil imports at their weakest level since February 1999, at 245 million barrels.

The politically-sensitive trade gap with China widened to $18.3bn, up from $18.1bn in December.

US exports fell by 0.3% in January, with less machinery, agricultural products and civilian aircraft sold.

The trade gap’s fall was a surprise. Economists had expected it to widen further after it increased by nearly 10% between November and December.

The dollar fell against both the yen and the euro after the news was announced.

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