U.S. Jan trade gap narrows more than expected

WASHINGTON, March 9 (Reuters) - The U.S. trade deficit narrowed slightly more than expected in January to $59.1 billion, as U.S. exports rose to a new record and imports declined, a Commerce Department report showed on Friday.

The monthly trade gap shrank 3.8 percent from December and was less than the median forecast of $59.7 billion made by Wall Street analysts surveyed before the report.

The narrowing of the trade gap comes after it set an annual record for the fifth straight year in 2006. Last year's deficit totaled $765.3 billion, the Commerce Department said, up slightly from a preliminary figure published last month.

U.S. exports, which have been aided by a weaker U.S. dollar and stronger foreign economic growth, rose 1.1 percent in January to $126.7 billion.

The gain was driven by record exports of capital goods, especially civilian aircraft, computers and industrial machines, the report showed.

Exports of consumer products, ranging from household goods to pharmaceuticals to musical instruments, also set a record as did food, feed and beverages.

U.S. imports fell 0.5 percent to $185.8 billion, although two categories -- food, feed and beverages and capital goods -- set new records.

Computers accounted for a big share of the increase in capital goods imports, while fish products led gains in the food, feeds and beverage category.

Prices for imported oil slipped in January to $52.23 per barrel, down $1.61 from December. However, the crude oil import bill rose to $16.72 billion in January, from $15.80 billion the previous month, as volumes increased.

The closely watched U.S. trade deficit with China widened 12 percent in January to $21.3 billion, once again the largest with any single trading partner.

The deficit with the European Union shrank to $6.5 billion, the lowest in three years, as exports to the trade bloc set a record at $19.6 billion.