Balance of Trade

Previous: $-79.3B

Forecast: $-83B

The balance of trade measures the difference in value between imported and exported goods and services. Higher than expected balance of trade is bullish, while lower than expected balance of trade is bearish.

The US trade deficit widened to a record high of $89.7 billion in January of 2022 from an upwardly revised $82 billion in the previous month and above market forecasts of an $87.1 billion gap. It reflects an increase in the goods deficit of $7.1 billion to $108.9 billion, as soaring energy costs pushed imports to a record high while the services surplus narrowed by $0.6 billion to $19.2 billion. Imports increased 1.2% to a new record high of $314.1 billion, boosted by purchases of passenger cars, crude oil, natural gas, copper, food and capital goods. Exports fell 1.7% to $224.4 billion, led by pharmaceutical preparations, travel and services, while shipments increased for civilian aircrafts, telecommunications equipment and financial services. The deficit with Canada increased $2.6 billion to $6.8 billion; the shortfall with Japan widened by $2.1 billion to $7.1 billion; while the gap with India decreased $1.5 billion to $2.4 billion. source: Bureau of Economic Analysis (BEA)