Trade Gap

WASHINGTON — The U.S. trade deficit widened sharply in January, driven higher by record imports of autos, capital goods and food, government data showed. The trade gap expanded 4.3% in January to $52.6 billion from $50.4 billion in December, the Commerce Department said Friday. This is the largest monthly differential between imports and exports since October 2008 and came in much bigger than expected. Analysts surveyed by MarketWatch had predicted that the deficit would reach $49 billion.

WASHINGTON — The U.S. trade deficit widened sharply in January, driven higher by record imports of autos, capital goods and food, government data showed. The trade gap expanded 4.3% in January to $52.6 billion from $50.4 billion in December, the Commerce Department said Friday. This is the largest monthly differential between imports and exports since October 2008 and came in much bigger than expected. Analysts surveyed by MarketWatch had predicted that the deficit would reach $49 billion.

The article "U.S. Warned of Superconductor Gap With Japan" (Part I, Nov. 16) vividly points out the principal reason for our trade deficit with Japan. The Pentagon's leading scientific advisers urge an "aggressive billion-dollar effort to explore the military potential" of this new technology. While the U.S. concentrates on the new superconducting materials for the development of military weapons, the intelligent and wily Japanese surge ahead with this new technology in the development of marketable consumer products.

The U.S. trade deficit narrowed more than forecast in July, reaching a three-month low as exports climbed to a record and crude oil imports eased. The gap shrank 13.1 percent, the most since February 2009, to $44.8 billion from a revised $51.6 billion shortfall in June that was smaller than initially reported, Commerce Department figures showed today in Washington. The deficit was less than all projections in a Bloomberg News survey. Exports rose 3.6 percent as companies shipped more capital goods and automobiles to overseas customers.

The U.S. trade deficit improved dramatically in October, narrowing to $7.03 billion as American exports climbed to an all-time high, the government said Thursday. The Commerce Department said the October deficit, the lowest since June, was 18% below September's deficit of $8.57 billion and reflected the fact that imports declined slightly while exports rose by $1.5 billion. More than half of the export improvement came in just two categories, civilian aircraft, which rose by $526.

The U.S. trade deficit shrank more than forecast in December and showed the first annual drop since 2001 as the faltering economy eroded demand for imported autos and consumer goods. The gap narrowed 6.9% from November to $58.8 billion, the Commerce Department said Thursday. Imports fell 1.1%, and exports rose 1.5%.

The Federal Reserve's policy-setting panel spent part of its September gathering discussing the implications of the United States' massive trade deficit, according to minutes of the meeting that were disclosed Friday. "Some policymakers noted that domestic demand in several major U.S.

Economists say the United States continues to suck in large amounts of foreign goods, which they expect drove imports to record levels in November and widened the nation's monthly trade gap. The Commerce Department is due Wednesday to release the volatile trade figures, whose gyrations often roil financial markets. Economists said they believe November exports rose from October but say the gain will be eclipsed by a 3% jump in imports.

Mexico posted a wider-than-expected trade deficit for December, as a strong peso and lower oil prices hurt export earnings, while strong economic growth boosted imports of capital and consumer goods. The $722-million deficit, the sixth in a row and the largest in three years, was more than double November's $347-million trade gap.

The U.S. trade deficit widened sharply in July to a record $68 billion, as oil import prices and demand for foreign goods and services rose to new highs, a government report showed Tuesday. The trade gap swelled 5% from June for the biggest month-to-month gain in nearly a year, surprising analysts who had expected surging oil prices to only slightly widen the deficit. The trade shortfall was expected to weigh on economic output in the third quarter.

China's trade surplus in July swelled to its highest level in more than two years, led by strong demand from Europe and emerging markets in Asia. But analysts said that's likely to be unsustainable if the global economy continues to weaken. The country's trade surplus rose to $31.5 billion in July, the biggest gap since January 2009 and up from the $22.3-billion surplus registered in June, Beijing said Wednesday. Chinese exports grew an impressive 20.4% from a year earlier, to $175.1 billion, the strongest performance since April.

WASHINGTON — Record U.S. exports in April tempered fears that the economic recovery was running off the rails, even though first-time claims for jobless benefits edged higher last week. A Commerce Department report released Thursday showed the U.S. trade deficit narrowed unexpectedly in April as exports hit a new high and imports from Japan tumbled more than 25% after its earthquake, tsunami and nuclear disaster. The trade gap narrowed 6.7% from March to $43.7 billion even though oil prices hit their highest level since September 2008.

The U.S. trade deficit narrowed for a fourth straight month in November, government data showed Thursday, confounding economists who had expected an increase. The nation's trade deficit contracted 0.3% to $38.3 billion from a revised $38.4 billion in October, the Commerce Department said, making it the smallest trade gap since January 2010. Analysts surveyed by MarketWatch had expected the deficit to widen to $40.3 billion. The trade deficit shrank 13.9% in October. The last time the deficit shrank four months in a row was in late 2008 and early 2009.

The number of people who filed new claims for unemployment benefits fell in the latest week, reversing a recent run-up that stoked concerns of a weakening job market. Also Thursday, the Commerce Department reported that the U.S. trade deficit dropped sharply in July as exports rose, a positive indicator. Although the economy is still weak and jobs are hard to find, the data are the latest in a string of reports that have eased concerns of a double-dip recession. New unemployment applications shot as high as 504,000 in mid-August, but this week's number is more than 10% lower at 451,000, according to Labor Department data.

In a sign that Americans are persisting in the risky habit of buying more than they sell in the global economy, the U.S. trade deficit jumped unexpectedly in May to the highest level since November 2008. That prompted some analysts to cut back their forecasts of how much the economy would grow in the second quarter and to warn that the underlying imbalance posed a threat to the nation's long-term prosperity and economic strength. "Definitely the weakness in trade through May suggests less momentum in the economy," said Shawn DuBravac, chief economist for the Consumer Electronics Assn.

Their demands may seem commonplace: Better pay and better conditions. But the impact of Chinese workers walking off their factory lines in recent weeks could one day reshape China's economic relationship with the United States. Labor unrest at companies including Honda Motor Co., electronics giant Foxconn and, on Friday, a parts supplier for Toyota Motor Corp. has shifted attention in China toward the gap between rich and poor and the sustainability of cheap labor. It also comes as minimum wages are rising in a handful of provinces and cities.

The U.S. trade deficit shrank much more than expected in April, raising hopes for stronger economic growth as the weakening dollar helped trim imports and boost exports to a record. The trade gap narrowed 6.2% to $58.5 billion from a downwardly revised estimate for March, the Commerce Department reported Friday, adding to signs that U.S. economic growth could top 3% or even 4% in the second quarter.

The U.S. trade deficit shot up nearly 10% to $36.4 billion in November, hitting its highest point since last January, the Department of Commerce said Tuesday. But even as imports soared, exports also grew -- for the seventh straight month. And some cheered the greater trade activity. "Today's numbers are a welcome sign of economic growth and increasing consumer demand," Commerce Secretary Gary Locke said. But one economist likened the situation to increasing a credit card balance by $100 a month, eventually leading to poverty.

Friday's news that the trade deficit narrowed in August shows the silver lining from dollar's steep drop. The greenback has been declining relative to other major currencies for months. Concerns are growing that foreign investors might curtail their investments in dollar assets. But so long as the slide remains gradual and orderly, economists generally view it as a plus for the U.S. economy. Though a weak dollar makes imported goods such as oil more expensive, it boosts the competitiveness of U.S. exporters, helping to rebalance an economy that has been skewed away from exports for years.