The trade gap widened much more than expected in December. Imports and exports rose, with imports rising far more.

In what’s likely to negatively impact the next revision to fourth-quarter GDP estimates, the BEA’s report on International Trade for December shows the trade deficit widened sharply thanks to surging imports.

The deficit was larger than any Econoday economists’ estimate. The consensus was -$51.9 billion in a range of -$51.2 billion to -$52.7 billion.

3 Month Moving Average

Those looking for an acceleration in something cannot point to wages but they can point to trade deficits. The trade imbalance for the month surged to $53.1 billion.

2017 Summary

2017 Exports vs Imports

For 2017, the goods and services deficit was $566.0 billion, up $61.2 billion from $504.8 billion in 2016. Exports were $2,329.3 billion in 2017, up $121.2 billion from 2016. Imports were $2,895.3 billion in 2017, up $182.5 billion from 2016.

2017 China

For 2017, the deficit with China increased $28.2 billion to $375.2 billion. Exports increased $14.8 billion to $130.4 billion and imports increased $43.0 billion to $505.6 billion.

2017 Mexico

For 2017, the deficit with Mexico increased $6.7 billion to $71.1 billion. Exports increased $13.3 billion to $243.0 billion and imports increased $20.0 billion to $314.0 billion.

2017 Japan

For 2017, the deficit with Japan was essentially unchanged at $68.8 billion. Exports were $68 billion, imports $137 billion. Imports and exports each rose about $4 billion.

2017 EU

For 2017, the deficit with the European Union increased $4.7 billion to $151.4. Exports increased $13.9 billion to $283.5 billion and imports increased $18.6 billion to $434.9 billion.

Synopsis