WASHINGTON, March 7 Reuters The U.S. trade deficit widened sharply in January amid a jump in goods imports, a trend that if it persists could see trade subtracting from economic growth this quarter.

The trade deficit increased 5.1 to 67.4 billion, the Commerce Department39;s Bureau of Economic Analysis said on Thursday. Data for November was revised to show the trade gap rising to 64.2 billion instead of 62.2 billion as previously reported. The trade deficit narrowed to 779.8 billion in 2023 from 951.2 billion in 2022.

It represented 2.9 of gross domestic product, down from 3.7 in 2022. Trade added 0.32 percentage point to the economy39;s 3.2 annualized growth rate in the fourth quarter after being neutral for two straight quarters. Growth estimates for the first quarter are converging around a 2.0 pace.

Imports increased 1.1 to 324.6 billion in January. Goods imports shot up 1.2 to 263.4 billion.

Imports of capital goods as well as those of motor vehicles parts and engines were the highest on record, which bodes well for business investment on equipment. Services imports rose 0.5 billion to an alltime high of 61.3 billion.

Exports edged up 0.1 to 257.2 billion. Goods exports also nudged up 0.1 to 171.8 billion. Though capital goods exports were the highest on record, they were partially offset by a 1.4 billion decline in crude oil exports. Exports of services increased 0.2 billion to 85.4 billion, also a record high.

Reporting by Lucia Mutikani; Editing by Chizu…