Experts: Blame the Growing Trade Gap on Income-Strapped Consumers

The U.S. trade deficit widened to a record in January, the government reported Thursday, as the strengthening U.S. economy attracted a surge of imported cars, household goods and petroleum products.

Americans imported $68.5 billion more in goods and services than they exported at the start of the year, up 5.3 percent from December, the U.S. Commerce Department said. The previous record monthly deficit was in October, when it swelled to $67.8 billion.

A 3.5 percent jump in imports in January appears to reflect the sharply higher consumer spending during the month and rising price of oil and other energy products.

Automobile and car parts imports increased 5.3 percent, and petroleum- based imports increased 4.3 percent.

Exports rose 2.5 percent from December, with soybean shipments doubling and airplane sales up 44 percent.

The trade deficit was larger than the $66.5 billion that economists had forecast, and analysts said they expected the gap to narrow somewhat in the coming months because oil prices have retreated after soaring early this year on concerns about Iran and Nigeria.

The Labor Department reported earlier that the price of petroleum imports jumped 6.4 percent in January after falling 0.4 percent in December.

Many experts expect a slowdown in U.S. consumer demand after the sharp increase during an unusually warm January, and as the Federal Reserve continues to raise interest rates.

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