**MNI: 5 Things We Learned From The December Trade Data>

By Kevin Kastner, Holly Stokes, and Sara Haire

     WASHINGTON (MNI) - The following are the key points from the 

December international trade report released by the Commerce Department 

Tuesday:

     - December trade deficit widened to -$53.1b vs -$52.0b expected, 

the largest deficit since October 2008, as imports and exports both rose 

to record highs in the month. The November gap was revised very modestly 

smaller to -$50.4b from prev -$50.5b. 

     - The BOP goods gap widened to -$73.3b in December, while the 

census goods gap widened to -$72.3b vs -$71.6b in the advance estimate 

used for the advance GDP report, accounting for some of the miss in the 

headline number. As a result fourth quarter net exports could be revised 

to a larger gap, but an offsetting revision to November could soften 

that impact. 

     - Ex-petroleum, the goods gap widened to -$69.0 from -$65.3b, but 

the petroleum gap narrowed to -$3.3b from -$4.5b in November as exports 

rose and imports declined.

     - The rise in exports was driven by industrial supplies and 

capital goods (particularly civilian aircraft), while the surge in 

imports primarily reflected a $3.2b jump in consumer goods, about half 

of which was $1.7b in cell phones. Imports were also up for autos, 

industrial supplies, capital goods and food. 

     - The bilateral trade gap for December widened with the EU to the 

highest on record (-$15.8b). The gap also widened with Canada, but there 

were narrower gaps with China, Japan, and Mexico. 

     ** MNI Washington Bureau: 202-371-2121 ** 

[TOPICS: MAUDS$,M$U$$$,MAUDR$]