International Trade Balance Narrowed in December

The U.S. international trade deficit narrowed in December to $44.3 billion, down from $45.7 billion in November, according to the U.S. Census Bureau of Economic Analysis. The contraction reflected a $5.0 billion increase in exports along with a $3.6 billion increase in imports.

The goods deficit decreased $1.2 billion to $65.7 billion, while the services surplus rose $0.3 billion to $21.4 billion. Exports of goods rose $4.8 billion to $126.9 billion in December, driven by increases in capital goods.

Exports of capital goods jumped by $3.3 billion, largely due to a $1.0 billion increase in both civilian aircraft and engines for civilian aircraft exports. Exports of services increased $0.2 billion to $63.8 billion.

Imports of goods increased $3.6 billion to $192.6 billion, mostly due to an increase in automotive vehicles, parts, and engines, which rose by $1.6 billion. Imports of services were virtually unchanged at $42.3 billion in December.

Read the Census/BEA release.

About Jack McCabe

Jack McCabe is a research associate in the Economic Policy and Research group at the ABA.
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