US trade balance for December 2019
- prior report $-43.1 billion revised to $-43.7 billion
- exports rose 0.8% to $209.68 billion on industrial supplies
- imports rose 2.7% to $258.5 billion on oil, gold
- 2019 goods – trade gap with China narrows 17.6% to $345.6 billion
- US capital goods imports $56.05 billion verse November imports of $55.41 billion
- US – China December trade deficit $24.79 billion verse November deficit of $26.37 billion
- US – OPEC December trade surplus $1.33 billion verse November surplus of $1.02 billion
- US December will import price $51.48 per barrel versus Novembers $51.92 per barrel
- US annual trade deficit shrinks for the 1st time in 6 years. Narrows to $616.8 billion. China $345.6 billion of that deficit.
- US surplus and services declined by 4% to $249.2 billion as imports of services gained
The trade reports were making progress over the 2nd half of the year, but gave back some of those gains in December. Nevertheless, the claim deficit with China is what Pres. Trump wants to see but it is still elevated. The surplus with the OPEC countries is also good news. Although Trump harps on the deficit, and despite the gains this year, the trade gap remains more than 20% wider than before he became president. The reason is that with a stronger US economy, Americans consumers drives more imports.
More on China
- imports from China dropped -16.2% in 2019. That fall exceeded the drop in 2009 during the global financial crisis.
- exports to China decline by a lesser -11.3% (largest drop since 2003)
