Goods and Services Deficit on the Rise

The goods and services deficit was $70.3 billion in December, up $17.3 billion from $53.0 billion in November, according to the U.S. Census Bureau and the U.S. Bureau of Economic Analysis.

December exports were $287.3 billion, $5 billion less than November exports. December imports were $357.6 billion, $12.3 billion more than November imports.

The December increase in the goods and services deficit reflected an increase in the goods deficit of $15.7 billion to $99.3 billion and a decrease in the services surplus of $1.6 billion to $29 billion.

For 2025, the goods and services deficit decreased $2.1 billion, or 0.2%, from 2024. Exports increased $199.8 billion or 6.2%. Imports increased $197.8 billion or 4.8%.

Key takeaways:

·        Exports of goods decreased $5.5 billion to $180.8 billion in December. Exports of goods on a Census basis decreased $5.6 billion.

·        Industrial supplies and materials decreased $8.7 billion. Other goods decreased $1.3 billion. Capital goods increased $2.5 billion. Semiconductors increased $0.9 billion. Consumer goods increased $1.8 billion. Pharmaceutical preparations increased $1.3 billion.

·        Imports of goods increased $10.2 billion to $280.2 billion in December. Imports of goods on a Census basis increased $10.2 billion.

·        Industrial supplies and materials increased $7 billion. Copper increased $1.5 billion. Crude oil increased $1 billion. Capital goods increased $5.6 billion. Consumer goods decreased $3.5 billion. Pharmaceutical preparations decreased $4.6 billion.

·        Imports of services increased $2.0 billion to $77.4 billion in December. Transport increased $1.5 billion.

·        The real goods deficit increased $12.5 billion, or 14.8%, to $97.1 billion in December, compared to a 19% increase in the nominal deficit.