January trade balance figures

US trade deficit chart
  • Prior was $59.8 billion (revised to $59.9B)
  • Exports +0.9% vs -1.9% prior
  • Imports -2.6% vs +2.1% prior
  • Goods deficit $73.29B
  • The advance goods trade deficit was $74.4B
  • Services surplus $22.14B
  • US-China deficit $34.47B vs $36.83B prior

Slowing imports isn't the best way to improve the trade deficit but it's an improvement nonetheless. Imports from China were down 9% y/y with capital goods imports down. That looks to be a trade war story.

Goods were in-line with the preliminary data but services were better than anticipated with a whopping $22 billion surplus.

The US dollar is at the best levels of the day against the commodity currencies and is making progress elsewhere.