Trade Deficit Widens In December

The nation's trade deficit widened in December to $43.4 billion from a revised $42.2 billion in November. Exports have been extremely weak and weakened further, down 0.3 percent to $181.5 billion in the month. Exports of civilian aircraft fell sharply with exports of industrial supplies and foods/feeds/beverages also down. Imports rose 0.3 percent to $224.9 billion led by autos and industrial supplies and offsetting a decline for non-auto consumer goods. The decline in exports is the latest hard evidence of global affects made more severe for U.S. exporters by the strength of the dollar, but the rise in imports, despite the decline in consumer goods, offers a positive indication on domestic demand.

Recent History Of This Indicator:
The nation's trade deficit is expected to widen slightly to $43.0 billion in December from November's $42.4 billion. Weak global demand has been hurting exports while imports, despite strength in the dollar, have also been slipping in what may be a sign of slowing domestic demand. Last week's advanced data on December showed a widening in the goods deficit to $61.5 billion from $60.3 billion.