US Trade Deficit Widens In December

The US trade gap widened to USD 43.4 billion in December of 2015 from a downwardly revised USD 42.2 billion in the previous month and roughly in line with expectations. Exports shrank for the third straight month while imports posted the first rise in four months. Considering full 2015, the country’s trade deficit widened 4.6 percent from 2014 as exports fell more than imports.

The December increase in the goods and services deficit reflected a rise in the goods deficit of USD 1.3 billion to USD 62.5 billion and an increase in the services surplus of USD 0.1 billion to USD 19.2 billion.

Total sales declined 0.3 percent to USD 181.5 billion, the third consecutive decline. Exports of goods decreased USD 0.8 billion to USD 121.2 billion: Automotive vehicles, parts, and engines decreased USD 0.6 billion; industrial supplies and materials decreased USD 0.4 billion, other petroleum products decreased USD 0.5 billion; foods, feeds, and beverages decreased USD 0.4 billion and soybeans decreased USD 0.2 billion. Exports of services increased USD 0.3 billion to USD 60.3 billion: financial services increased USD 0.2 billion; other business services, which includes research and development services; professional and management services; and technical, trade-related, and other services, increased USD 0.1 billion.

Total imports edged up 0.3 percent to USD 224.9 billion, posting the first rise in four months. Imports of goods increased USD 0.5 billion to USD 183.7 billion: automotive vehicles, parts, and engines increased USD 1.0 billion; industrial supplies and materials increased USD 0.5 billion; nonmonetary gold increased USD 0.3 billion and crude oil increased USD 0.2 billion. Purchases of services increased USD 0.1 billion to USD 41.2 billion: travel (for all purposes including education) increased USD 0.1 billion and other business services increased USD 0.1 billion.

Considering full 2015, the goods and services deficit was USD 531.5 billion, up USD 23.2 billion or 4.6 percent from 2014. Exports were USD 2,230.3 billion, down USD 112.9 billion or 4.8 percent. Imports were USD 2,761.8 billion, down USD 89.7 billion or 3.1 percent.

US Trade Deficit Widens In December

BEA | Nuno |
2/5/2016 2:09:20 PM