Trade Gap Widens

The nation's trade gap in goods widened 2.0 percent in December, to $61.5 billion from a revised $60.3 billion in November. The rising shortfall reflects further contraction in exports especially food and capital goods. Exports fell 1.0 percent in the month and compared to last year are down 10.4 percent. Imports were unchanged in the month with imports of industrial supplies rising and imports of autos showing special strength. Imports of consumer goods, however, fell sharply for a second month while imports of capital goods also declined, in declines that betray a defensive outlook for the nation's businesses. Year-on-year, imports fell 7.8 percent. The complete trade report for December will be posted next Friday.

Recent History Of This Indicator:
The international trade in goods is expected to narrow slightly in December to an advance reading of $60.1 billion. Declines in imports have been helping to narrow the gap though exports have been stubbornly weak, reflecting weak global demand made weaker for U.S. goods by the strength of the dollar.