Trade deficit number improves slightly

The U.S. trade balance of goods and services resulted in a deficit of $58.2 billion in December, a 6.9% decrease in the deficit compared with November, according to a report released today by the Department of Commerce. The data brings the total trade deficit for goods and services last year to $711.6 billion, down 6.2% compared with the $758.5 billion deficit of 2006, the first year-to-year decrease in the deficit since 2001. Total U.S. exports of goods and services in December totaled $144.3 billion, while imports accounted for $203.1 billion. The $58.2 billion deficit was down from $63.1 billion in November. The trade deficit for goods in December was $68.2 billion, offset by a services surplus of $9.5 billion. Changes in the exports of goods were due mainly to capital goods, which increased by $2 billion, and industrial supplies and materials, were up $1 billion. In 2007, the trade goods and services deficit accounted for 5.1% of U.S. gross domestic product, down from 5.7% in 2006.