US trade deficit widens sharply in January

America's shortfall on trade with the rest of the world widened unexpectedly last month.

According to the Department of Commerce, in seasonally adjusted terms, the country's total foreign trade deficit increased at a month-on-month pace of 7.1% to reach $107.6bn.

That was far more than the -$98.5bn deficit that economists had penciled-in.

Exports dropped by 1.8% on the month to $154.8bn, even as imports increased by 1.7% to $262.5bn.

In the same report, Commerce reported a 0.8% increase in US wholesale inventories to reach $798.2bn, led by 1.9% jump in retail inventories to $658.1bn.