The U.S. trade deficit contracted more than anticipated in January, according to data released Thursday by the Commerce Department.
The report showed the trade gap narrowed to $54.5 billion in January, compared with a revised deficit of $72.9 billion recorded in December.
Economists had expected the deficit to decline more modestly to $67.9 billion from the previously reported $70.3 billion in the prior month.
The larger-than-expected improvement was driven by a strong rise in exports alongside a slight decline in imports. Exports increased 5.5% to reach $302.1 billion, while imports edged down 0.7% to $356.6 billion.