US trade gap marginally higher at $39.1 bn in January

US international trade deficit stood somewhat higher in January but continued on a narrowing trend as the global economy continued to recover, according to official data released yesterday.

I's trade shortfall in goods and services was up at $39.1 billion in January from $39.0 billion in December with imports increasing more than exports, according to the Commerce Department.

The December trade gap underwent an upward revision from the initially estimated $38.7 billion.

The larger trade gap was not expected and on an average, analysts had forecast it would shrink to $37.3 billion.

Meanwhile, US job growth outpaced expectations in February, easing fears of an abrupt slowdown in economic growth and keep the Federal Reserve on track on reduction of monetary stimulus, Reuters reports.

Employers added 175,000 jobs to their payrolls last month after creating 129,000 new positions in January, according to the Labour Department.

The unemployment rate, however, was up at 6.7 per cent from a five-year low of 6.6 per cent.

According to economists polled by Reuters, non-farm payrolls were expected to rise by 149,000 while the unemployment rate was expected to hold steady at 6.6 per cent.

Unseasonably cold and snowy winter weather conditions had led to disruption of economic activity and densely populated areas were hit by heavy snowfall during the week employers were surveyed for February payrolls.