U.S. Trade Deficit Narrows to $54.5 Billion in January

The U.S. trade deficit in goods and services narrowed sharply to $54.5 billion in January, a 25 percent decrease from December's revised figure of $72.9 billion, as exports reached a record high and imports edged lower, according to data released Thursday by the Commerce Department's Bureau of Economic Analysis and Census Bureau.

The improvement exceeded economists' expectations of a $66.6 billion deficit and marked the largest monthly decline in the trade gap since October 2021. Total exports climbed 5.5 percent to $302.1 billion, the highest level on record. Goods exports rose 8.1 percent to $195.5 billion, propelled by a $9.4 billion surge in industrial supplies and materials, primarily nonmonetary gold and other precious metals. Capital goods exports increased by $5.4 billion to another record, driven by shipments of computers, civilian aircraft and related components. Exports of other goods gained $2.9 billion, also hitting an all-time high. Consumer goods exports fell $2.8 billion to the lowest since October 2022, largely due to a $2.1 billion drop in pharmaceuticals. Service exports grew 1.2 percent to $106.7 billion, bolstered by increases in business services,...