WASHINGTON—The U.S. trade deficit widened in January as American consumers stepped up purchases of imported products.
The deficit in trade of goods and services expanded by 1.9% to a seasonally adjusted $68.2 billion in January, the Commerce Department said Friday, compared with a $66.97 billion gap in December. Analysts polled by The Wall Street Journal had projected a deficit of $67.6 billion.
Imports increased 1.2% to $260.2 billion from December, while exports grew 1.0% to $191.9 billion.
Americans splurged on consumer goods in January, helped by $600 payments many received as part of the latest round of government stimulus spending to fight the impact of the pandemic. Retail sales jumped a seasonally adjusted 5.3% in January from the previous month, the biggest increase since June.
With the global economy on a recovery path, exports also expanded modestly, bolstered by higher shipments of industrial supplies and capital goods. Many countries loosened restrictions on economic activity at a quicker pace as Covid-19 cases fell sharply from their peak around the new year.
