Trade Deficit Lower Than Estimates as US Exports Hit Another Record

- The Trade Deficit for January came in at -$58.2 billion versus estimates of -$59.5 billion and a downwardly revised -$57.9 billion in December.

BOTTOM LINE: The US trade deficit was smaller than forecast in January as a weaker dollar propelled gains in exports that will prevent a deeper economic slowdown, Bloomberg said. Overseas demand for US goods rose 1.6% to another new record. Imports rose 1.3% on the record price for imported crude oil. Excluding petroleum, the trade deficit was the smallest since October 2002. Goldman Sachs now forecasts that trade will contribute a full percentage point to growth this quarter. I expect the trade deficit to continue to improve over the intermediate-term.