US trade deficit increases to 46.3 BB in January 2011 on increased US demand

The U.S. trade deficit worsened sharply and oil had only a small role in it. But the detail in imports indicates it may also be a response to healthy demand.  About half of the trade deficit came from China who we maintain a $26.3 BB trade deficit.  No wonder they keep buying treasuries, it is an easy way to influence the US consumer with a capital account surplus to keep buying their stuff.

The overall U.S. trade deficit in January widened to $46.3 BB.   Exports gained 2.7% and imports posted a huge 5.2% increase. Via Econoday:
Looking at end use categories for goods, the jump in imports was led by a $4.4 billion spike in industrial supplies but only $1.7 billion came from oil imports. Notably, capital goods imports excluding autos jumped $2.1 billion while automotive imports increased $2.7 billion. The surge in these imports may be related to meeting expected demand and this actually would be a positive sign for forward momentum although for the near term, it means a downward revision to first quarter GDP growth estimates.

By end-use categories, the boost in goods exports was led by a $3.7 billion jump in industrial supplies with automotive exports advancing $1.3 billion. Capital goods exports slipped 0.4 billion-largely on lower aircraft shipments. Consumer goods exports edged down $0.6 billion while food, feeds & beverages were essentially unchanged.

US Surpluses in Billions 
Hong Kong $2.2,
Australia $1.2,
Singapore $0.8, and
Egypt $0.5.

US Deficits in Billions 
China $23.3
OPEC $9.9
European Union $5.6
Japan $5.0
Mexico $4.9
Canada $3.7
Germany $3.1
Nigeria $2.9
Venezuela $2.8
Ireland $1.9
Korea $1.0
Taiwan $0.9

Release Via Census:


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