International Trade - December 2007

The trade deficit narrowed more than expected in December as exports posted broad-based gains and non-oil imports fell. The revised trade numbers will lead to an upward revision of Q4 real GDP by about 0.4 percentage point.

Exports Jumped Up in December

- Exports rebounded $2.2 billion in December. Although the volatile component of aircraft exports rose $1.4 billion, gains were widespread.
- Solid economic growth in the rest of the world and dollar weakness are contributing to strong growth in U.S. exports.

Big Decline in Non-Oil Imports

- The weakness in imports was concentrated in consumer-related categories. Imports of autos and consumer goods plunged $2.6 billion.
- The trade deficit narrowed more than BEA initially assumed. The revised numbers will lead to an upward revision of Q4 real GDP by about 0.4 percentage point.


Wachovia Corporation