U.S. Trade Gap Narrows in Jan. as Economy Slows

The U.S. trade deficit narrowed in January from a record as Americans bought fewer foreign goods in a slowing economy and exports rose, a government report showed Wednesday.

The trade gap in goods and services was $41.1 billion, trailing December’s revised $44.9-billion deficit, the Commerce Department said. In 2002, the deficit reached a record $435.7 billion.

Growth forecasts are slipping as consumers curb spending and business investment lags, suggesting Americans may buy fewer imported goods.

“We will see less inventory building in the first quarter and therefore fewer imports,” given the prospect of war with Iraq and the slowing economy, said Elisabeth Stoegmueller, a Dresdner Kleinwort Wasserstein economist.

Imports fell 2% in January to $123 billion, led by declines in automobiles and consumer goods, while exports rose 1.6% to $81.9 billion, helped in part by a weaker dollar. The dollar has fallen 26% against the euro and 9% against the yen in a year.

Imports probably slowed after rising a total of $7 billion the previous two months, when West Coast ports resumed operations after a labor dispute, analysts said.