US trade deficit falls 8.3 percent in January to $41.8 billion as exports, imports fall
{{#rendered}} {{/rendered}}FILE - In this Feb. 15, 2015 file photo, the Space Needle towers in the background beyond a container ship anchored in Elliott Bay near downtown Seattle. The Commerce Department releases international trade data for January on Friday, March 6, 2015. (AP Photo/Elaine Thompson, File) (The Associated Press)
The U.S. trade deficit in January dropped sharply as both exports and imports fell.
The Commerce Department says the deficit fell 8.3 percent to $41.8 billion in January, down from $45.6 billion in December. The shrinking trade gap reflected a drop in exports, which fell $5.6 billion to $189.4 billion. Imports fell $9.4 billion to $231.1 billion.
Much of the dip in imports likely came from lower oil prices and a labor dispute that disrupted shipping at West Coast ports. At the same time, the strong dollar that has made American-made goods less affordable abroad is weighing down exports.
{{#rendered}} {{/rendered}}Economists expect the deficit to widen further in 2015 as stable growth in the United States drives imports and tepid growth overseas paired with a strong dollar depress exports.