Despite the fact that the trade gap had maintained its well below average increase in the fourth quarter of 2007, there was a slight widening in January 2008. The price of oil has increased imports even higher, while the slow growth of the economy made the demand for many foreign goods go down and this trend will continue for some time in the future. The gap was shown to be less than 1 percent, at $58.2 billion, secured by the weak dollar that pushed exports to a record $148.2 billion, according to a Commerce Department report released today.

Recently, the domestic demand growth has come to almost a complete stop. However, net exports for this coming quarter could increase the economic growth by 0.8 percent and this is a good sign to some analysts.

The American economy is currently suffering from an increase in foreclosure rates, and the credit markets are in crisis. The results are a steep decline in the value of the American dollar, and a domestic recession of sorts. This is increasing the total exports, following the trend of the last 11 months. Exports are the backbone of the economy, but much of the improvement in trade is being diminished by the continuing rise in energy prices. This trend in energy prices seems to be heading to a never-ending destination.

In January, oil imports totaled a record $27.1 billion, at rates averaging $84.09 a barrel. In New York, trading showed the delivery of crude oil for April to be a continued rise up to $108.75 per barrel, $0.85 higher than the rate just one day before. This is likely to go higher as OPEC mulls over increasing production.

For the first time since October of 1992, the non- petroleum portion of the trade deficit fell BELOW the petroleum portion. This shows the rise in oil prices, and the fall in demand for high ticket items made in foreign countries (appliances, furniture, televisions, and clothes.)

January also saw a decrease in imports of industrial machinery and other capital goods. Importing from European Union nations fell 4.6% to $27.3 billion. However, imports from China, oddly enough, were up almost 2% to $26.2 billion.

In contrast, the exports of the United States rose to a new high of $148.2 billion, based on industrial and consumer goods, as well as food. Oddly enough, again, exports to China decreased 15.1%, down to a surprising $5.9 billion.