US trade deficit widens to $52.6 bn

March 9, 2012 | Business | Written by

Washington, March 10: US trade deficit surged to $52.6 billion in January, with both exports and imports increase, the commerce department said Friday.

In January, the world largest economy’s exports totalled $180.8 billion, 1.4 percent up from the previous month. Imports increased 2.1 percent from December to $233.4 billion.

The faster growth of imports resulted in a goods and services deficit of $52.6 billion, the highest level since October 2008, marking the third consecutive month of increase, Xinhua reported.

In January, the increase in imports of goods mainly reflected rise in automotive vehicles, parts and engines, industrial supplies and materials.

Trade deficit has been a drag of the US economic growth for many years. President Barack Obama said the country is on track to meet the goal of doubling exports over five years.

The US economy expanded at a quicker pace in the fourth quarter of last year and is expected to gain momentum this year.

IANS