The U.S. trade deficit was little changed in January as a rebound in exports closely matched an increase in imports, the government reported Friday. The Commerce Department said the deficit increased 0.3 percent to $39.1 billion from $39.0 billion in December. The January deficit was in line with economist expectations. Adjusted for inflation, the trade deficit fell to $48.5 billion in January from $49.2 billion the previous month. The measure goes into the calculation of gross domestic product (GDP). Trade contributed about 1 percentage point to the fourth-quarter's annual 2.4 percent growth rate as exports grew at their fastest pace in three years. Exports increased 0.6 percent to $192.5 billion in January, led by increased sales of U.S.-made machinery, aircraft, and medical equipment. Exports to China plunged 20.8 percent, widening the politically sensitive U.S. deficit with the world's second-biggest economy. Imports rose 0.6 percent to $231.6 billion, with capital goods soaring to a record high and imports of petroleum rising 9 percent. Imports from China rose 1.7 percent, while imports from the 27-country European Union rose 3.1 percent. Moderating domestic demand and inventory accumulation by businesses are expected to limit import growth in the first quarter of this year. For all of 2013, the trade deficit declined 11.2 percent to $474.9 billion, providing a small boost to overall growth. Economists believe trade will contribute to growth again this year, but only modestly.
