Q4 GDP Hopes Fade As US Trade Deficit Hits Widest Since Oct 2008

Hopes for a resurgent Q4 GDP may be stymied as the US trade balance dropped to a new post-Trump wide deficit in December of -$53.1bn (worse than expected $52.1bn) as trade imbalances with Europe and China both worsened.

December also brings the annual revision and final data for 2017. 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.

And finally, the trade deficit excluding petroleum at $49.84b in December – the widest trade deficit ever.

Full Breakdown:

Exports

Exports of goods and services increased $3.5 billion, or 1.8 percent, in December to $203.4 billion.

Exports of goods increased $3.4 billion and exports of services increased $0.1 billion.

The increase in exports of goods mostly reflected increases in industrial supplies and materials ($1.5 billion) and in capital goods ($1.2 billion).

The increase in exports of services mostly reflected increases in travel (for all purposes including education) ($0.1 billion) and in maintenance and repair

Imports

Imports of goods and services increased $6.2 billion, or 2.5 percent, in December to $256.5 billion. Imports of goods increased $6.0 billion and imports of services increased $0.3 billion.

The increase in imports of goods mostly reflected increases in consumer goods ($3.2 billion), in automotive vehicles, parts, and engines ($1.1 billion), and in capital goods ($0.8 billion).

The increase in imports of services mostly reflected increases in travel (for all purposes including education) ($0.2 billion) and in charges for the use of intellectual property ($0.1 billion).

By Nation

The December figures show surpluses, in billions of dollars, with South and Central America ($3.7), Hong Kong ($2.5), Brazil ($1.1), Singapore ($0.9), and United Kingdom ($0.3). Deficits were recorded, in billions of dollars, with China ($34.0), European Union ($17.2), Mexico ($6.1), Germany ($5.7), Japan ($5.5), Italy ($3.7), South Korea ($2.1), India ($2.1), France ($2.1), Taiwan ($1.6), Canada ($1.4), Saudi Arabia ($0.6), and OPEC ($0.5).