Global| Feb 13 2007U.S. Trade Deficit Deepened Unexpectedly
by:Tom Moeller
|in:Economy in Brief
Summary
The U.S. foreign trade deficit deepened unexpectedly in December to $61.2B from a little revised $58.1B during November. The figure compared to Consensus expectations for a deficit of $59.6B. For the year, the trade deficit deepened [...]
The U.S. foreign trade deficit deepened unexpectedly in December to $61.2B from a little revised $58.1B during November. The figure compared to Consensus expectations for a deficit of $59.6B. For the year, the trade deficit deepened to a record $763.5B.
Total exports rose 0.6% after an upwardly revised 1.1% gain in November. Export of non-auto consumer goods rose 1.2% for the third straight strong increase, and for the year rose 11.7%. Capital goods, however, slipped 0.2% in December though the firm 14.2% for the year benefited from a 16.9% rise in advanced technology goods and a 40.0% surge in complete civilian aircraft exports.
Imports of nonpetroleum products rose 1.6% (6.8% y/y) and for the year rose 9.2%. Capital goods imports slipped 0.7% (+7.6% y/y) and for the year rose 10.4% while imports of nonauto consumer goods jumped 2.0% (13.4% y/y) while posting an 8.8% gain for the year. Imports of advanced technology products fell 7.2% (+7.6% y/y) and for the year gained 12.0%.
The value of petroleum product imports rose 7.6% (-2.3% y/y) as the price of Brent crude oil rose to $62.98 but the quantity of crude oil imports fell 5.1% (-6.6% y/y).
The U.S. trade deficit in goods with China improved m/m to $19.0B but for the year deepened to $232.5B from $201.5B in 2005. The balance of goods trade with the newly industrialized Asian improved to a $1.0 surplus, the first surplus in ten year and for the year the deficit narrowed to $11.8B from $15.8B in 2005).
Disentangling the Wealth Effect: Some International Evidence from the Federal Reserve Bank of San Francisco can be found here.
How Wages Change: Micro Evidence from the International Wage Flexibility Project from the Federal Reserve Bank of New York is available here.
| Foreign Trade | December | November | Y/Y | 2006 | 2005 | 2004 |
|---|---|---|---|---|---|---|
| U.S. Trade Deficit | $61.2B | $58.1B | $64.2B (12/05) |
$763.5 | $716.7B | $611.3B |
| Exports - Goods & Services | 0.6% | 1.1% | 11.5% | 12.8% | 10.7% | 13.4% |
| Imports - Goods & Services | 2.1% | 0.3% | 5.6% | 10.5% | 13.0% | 16.7% |
Tom Moeller
AuthorMore in Author Profile »Prior to joining Haver Analytics in 2000, Mr. Moeller worked as the Economist at Chancellor Capital Management from 1985 to 1999. There, he developed comprehensive economic forecasts and interpreted economic data for equity and fixed income portfolio managers. Also at Chancellor, Mr. Moeller worked as an equity analyst and was responsible for researching and rating companies in the economically sensitive automobile and housing industries for investment in Chancellor’s equity portfolio. Prior to joining Chancellor, Mr. Moeller was an Economist at Citibank from 1979 to 1984. He also analyzed pricing behavior in the metals industry for the Council on Wage and Price Stability in Washington, D.C. In 1999, Mr. Moeller received the award for most accurate forecast from the Forecasters' Club of New York. From 1990 to 1992 he was President of the New York Association for Business Economists. Mr. Moeller earned an M.B.A. in Finance from Fordham University, where he graduated in 1987. He holds a Bachelor of Arts in Economics from George Washington University.
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