December 2015 International Trade (General)

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The goods and services deficit was $43.4 billion in December, up $1.1 billion from $42.2 billion in November. December exports were $181.5 billion, $0.5 billion less than November exports. December imports were $224.9 billion, up $0.6 billion from November.

The December increase in the goods and services deficit reflected an increase in the goods deficit of $1.3 billion to $62.5 billion and an increase in the services surplus of $0.1 billion to $19.2 billion.

The December figures show surpluses, in billions of dollars, with South and Central America ($2.8), United Kingdom ($0.6), and Brazil ($0.2).  Deficits were recorded, in billions of dollars, with China ($29.7), European Union ($13.3), Germany ($6.4), Japan ($6.3), Mexico ($4.8), South Korea ($2.5), Italy ($2.2), India ($2.0), France ($1.4), Canada ($1.4), Saudi Arabia ($0.5), and OPEC ($0.2).

* The balance with members of OPEC shifted from a surplus of $1.1 billion to a deficit of $0.2 billion in December. Exports decreased $1.2 billion to $5.2 billion and imports increased $0.1 billion to $5.4 billion.

* The deficit with Germany increased $0.8 billion to $6.4 billion in December. Exports decreased less than $0.1 billion to $4.1 billion and imports increased $0.8 billion to $10.5 billion.

For 2015, the goods and services deficit was $531.5 billion, up $23.2 billion (+4.6%) from $508.3 billion in 2014. Exports were $2,230.3 billion in 2015, down $112.9 billion (-4.8%) from 2014. Imports were $2,761.8 billion in 2015, down $89.7 billion (-3.1%) from 2014.

The 2015 increase in the goods and services deficit reflected an increase in the goods deficit of $17.5 billion or 2.4% to $758.9 billion and a decrease in the services surplus of $5.7 billion or 2.4% to $227.4 billion.

As a percentage of U.S. gross domestic product, the goods and services deficit was 3.0% in 2015, up from 2.9% in 2014. 

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On a global scale, data compiled by the Netherlands Bureau for Economic Policy Analysis showed that world trade volume contracted by 0.1% in November (+2.0% year-over-year) while prices fell by 1.3% (-12.8% YoY).

The foregoing comments represent the general economic views and analysis of Delphi Advisors, and are provided solely for the purpose of information, instruction and discourse. They do not constitute a solicitation or recommendation regarding any investment.