Updated: 05-Feb-21 09:50 ET
|Updated: 05-Feb-21 09:50 ET
- The December Trade Balance Report showed a narrowing in the trade deficit to -$66.6 billion (Briefing.com consensus -$65.7 billion) from a downwardly revised -$69.0 billion (from -$68.1 billion) in November.
- The improvement was a byproduct of exports, which were $6.2 billion more than November exports, exceeding the level of imports, which were $3.8 billion more than November imports.
- Exports of goods in December increased $6.0 billion, led by a $1.8 billion increase in industrial supplies and materials, a $1.4 billion increase in foods, feeds, and beverages, and a $1.1 billion increase in capital goods.
- Imports of goods increased $3.1 billion, paced by a $2.7 billion increase in industrial supplies and materials and a $2.0 billion increase in automotive vehicles, parts, and engines.
- The goods deficit with China decreased $2.3 billion to $28.1 billion in December. For 2020, the goods deficit with China decreased $34.4 billion to $310.8 billion.
- The key takeaway from the report is found in the annual summary for 2020, which indicates the goods and services deficit widened to $678.7 billion from $576.9 billion in 2019. Exports of goods decreased by $217.7 billion while imports decreased by $166.2 billion, underscoring the global demand drop-off amid the pandemic.