Balance of Trade

Previous: $-64.5B

Forecast: $-65B

The balance of trade measures the difference in value between imported and exported goods and services. Higher than expected balance of trade is bullish, while lower than expected balance of trade is bearish.

US trade deficit narrowed to $773.4 billion in 2023, the lowest in 3 years and down 19% from a record $951.2 billion in 2022. Imports fell 3.6% from a record $3.65 trillion in 2022 due to the lower cost of oil and the slowdown in demand for goods. Meanwhile, exports rose 1.2% or $35 billion to $258.2 billion, a record high with shipments of capital and consumer goods, and motor vehicles notching records. On the other hand, imports fell 3.6% or $142.7 billion from a record $3.65 trillion in 2022 due to the lower cost of oil and the slowdown in demand for goods. The goods trade deficit with China shrank to the smallest total since 2010 while trade gaps hit records with Mexico, Germany, Italy, the Netherlands, Mexico, South Korea, Taiwan, and India. In December alone, the deficit was little changed at $62.2 billion from a downwardly revised $61.9 billion in November, and matching forecast. Exports increased 1.5% to $258.2 billion while imports rose 1.3% to $320.4 billion. source: Bureau of Economic Analysis (BEA)