U.S. Trade Deficit Narrows in December

The U.S. trade deficit sank in December to $39.9 billion from $41.6 billion a month earlier as imports slowed faster than exports, the Commerce Department reported Wednesday.

Total exports were $133.8 billion and imports were $173.7 billion during the month. December exports were $8.5 billion less than in November and imports were $10.2 billion less, most due to declines in trade of goods.

The value of goods exported and imported was $88.7 billion and $140.3 billion, respectively, resulting in a goods deficit of $51.6 billion.

Areas that saw the biggest declines in overseas sales were industrial supplies and materials, automotive, consumer goods, and food, feed and beverages.

2008 trade figures showing U.S. exports of $1.84 trillion and imports of $2.52 billion resulted in a goods and services deficit of $677 billion, $23.2 billion less than the 2007 deficit. As a percentage of gross national product, the goods and services deficit was 4.7 percent in 2008, down from 5.1 percent in 2007.

For goods, the trade deficit still grew in 2008. Exports of goods were $1.29 trillion, up $138 billion, and imports were $2.11 trillion, up $143.5 billion. This resulted in a goods deficit of $821.2 billion, $1.8 billion more than the 2007 deficit.

For services, exports were $551.6 billion and imports were $407.6 billion, resulting in a services surplus of $144.1 billion, $24.9 billion more than the 2007 surplus.