Despite shrinking in January, the U.S. trade deficit could still weigh on first quarter economic growth. The nominal deficit in goods and services trade declined to $54.5 billion from an upwardly-revised $72.9 billion in December ($70.3 billion previously). After two monthly declines, exports snapped back 5.5% on broad based gains. Meanwhile, following sizable increases the prior two months, imports fell modestly amid widespread declines apart from continued purchases of computing equipment to feed the AI boom. On a regional basis, the U.S. goods trade deficit declined with Canada, Mexico and the EU, but continued to ... (full story)