US trade deficit widened slightly to $39.1 billion in January, reflecting jump in imported oil

WASHINGTON – The U.S. trade deficit widened slightly in January as a rise in imports of oil and other foreign goods offset a solid increase in exports.

The Commerce Department says the trade deficit increased to $39.1 billion, up 0.3 per cent from December’s revised $39 billion deficit.

Exports climbed 0.6 per cent to $192.8 billion, led by increased sales of U.S.-made machinery, aircraft and medical equipment. Imports also rose 0.6 per cent to $231.6 billion, reflecting a 9 per cent jump in imports of petroleum. Imports of food and machinery also rose.

The trade deficit is the difference between imports and exports. A higher trade deficit acts as a drag on economic growth because it means U.S. companies are making less overseas then their foreign competitors are earning in U.S. sales.