Friday, February 10, 2012

Trade Gap Widened by $1.7 Billion in December

The U.S. trade gap widened by 3.7% to $48.8 billion in December to its largest level since June. Despite the widening, the trade gap is smaller than was assumed by the government in the initial estimate for fourth quarter GDP. Notably, exports broke a two month slide and gained despite decreased demand from Europe.

Both imports and exports grew in December, however, imports grew more quickly. Imports grew by 1.3% to $228 billion. Exports improved by a more modest 0.7% to $179 billion. Goods and services purchased abroad are at three year highs, driven by demand for capital equipment such as machinery and semiconductors.

Read the report.

No comments:

Post a Comment

Please read our comment policy before making a comment.