The US trade deficit increased $1.7 billion (3.7%) in December to -$48.8 billion. This is surprising, given the details from our major trade partners. Imports from China declined $4 billion (10.8%) to $32.8 billion while exports to China decreased by a much smaller $230 million to $9.7 billion. Imports from Canada increased $284.3 million to $26.5 billion while exports decreased $567.9 million to $22.7 billion. In other words, our biggest trading partners had an enormous decrease combined, yet the deficit still increased. The biggest percent change came from exports to Japan, which droped $655.9 million, or 10.8%, to $5.4 billion.
–From the St. Louis Federal Reserve and the Bureau of Economic Analysis
Tags: December 2011, GDP, Trade Balance
