U.S. Trade Gap Shrank Slightly during January
WASHINGTON -- The U.S. trade deficit narrowed in January, the Commerce Department said, as exports continued to slip but imports fell faster.</br></br>The January deficit was $5.77 billion, compared with a revised December figure of $6 billion, the department reported. Exports fell in January to $35.54 billion from a revised $35.89 billion in December, while imports dropped to $41.3 billion from a revised $41.89 billion.</br></br>Although exports declined slightly, they continue to be a source of frustration for U.S. manufacturers. Exports were one of the few bright spots in the economy last year, jumping 7.6% to a record level.</br></br>But now, economic growth overseas has stalled just as the domestic economy is beginning to pick up. In December, exports fell a revised 2.9%, their third decline in a row. December imports rose a revised 1.9%.</br></br>The slowdown in exports is consistent with the economic slowdown in Germany and Japan and continued weakness in Canada, said John Silvia, chief economist for Kemper Securities in Chicago. "It's not just one sector that's being hit, it's both manufacturing and agriculture. It's a tough phase in the cycle, and this is typically what happens."