The trade deficit declined 6.9% to $58.8 billion in December 2007, as exports rose and imports fell, the U.S. Commerce Department announced Thursday. The figure was below the $61.6 trade deficit estimate.
For 2007, the trade deficit fell 6.2% to $711.6 billion, down from the record $758.5 billion recorded in 2006.
Monthly export record
December 2007 exports rose to a record $144.3 billion while imports declined for the first time in four months to $203.1 billion. Export activity remained strong to China, the Asia region, and South America. Exports of industrial supplies, civilian aircraft, capital goods, and consumer goods were particularly strong.
Economist Steve Affinito told BloggingStocks Thursday that in addition to a weaker dollar, which makes U.S. exports cheaper, the nation's exporters are demonstrating that they can find ways to maintain / increase international sales, even amid more-challenging economic conditions.
Trade: U.S. bright spot
"Across the board, companies are performing well on the export front, as U.S. goods, particularly high-value added items like aircraft, remain very competitive," Affinito said. "For the longest time trade had been a drag on U.S. GDP, but now it's starting to be a positive, which is good news for U.S. companies, employees, and the U.S. economy. The improving trade deficit picture is one of the few bright spots regarding the U.S. economy right now."
U.S. trade deficit narrows in December, declines 6% in 2007
Posted Feb 14th 2008 10:22AM by Joseph Lazzaro
Filed under: Good news, Economic data
Top growth fund manager sours on Apple, U.S. tech
New Facebook share structure hints at IPO
Before the bell: Futures higher ahead of housing, jobless data
