FXstreet.com (Barcelona) - US deficit in goods and services has narrowed in December to $58.8 billion from $63.1 billion in November, lower than the $61B expected, as exports increased and imports declined, according to data released by the US Census Bureau.
In December, exports increased $2.2 billion more than November's $142.2 billion, whereas imports were $2.2 billion less than November imports of $205.3 billion. The goods deficit decreased $4.6 billion from November to $68.2 billion, while the services surplus decreased $0.2 billion to $9.5 billion.
According to Ian Shepherdson, Chief U.S. Economist at High Frequency Economics these are the reasons of the deficit's decline: The deficit was pushed down by a 1.1% rise in core goods exports - we strip out oil and aircraft - and a 2.7% drop in core imports. An increase in the oil deficit was mostly offset by a rise in the aircraft surplus.
The goods and services deficit decreased by $ 1.5 billion in December from the same month in 2006 due to a 13.6% increase on exports, which was partially offset by a 8.6% increase on imports.
The outlook for US's current account looks positive, in Shepherdson's opinion: The trends in core trade remain favourable; exports are growing at a steady 12% or so y/y, while the trend in import growth has slowed to less than 4% and shows no sign of levelling off. The trade deficit will fall substantially further over the next few months.