REPEAT: MNI DATA ANALYSIS: US December Trade Gap Wider $53.1b>

Repeats Story Initially Transmitted at 13:30 GMT Feb 6/08:30 EST Feb 6

--Census Goods Gap $72.3b Vs $71.6b Advance Estimate

--2017 Total Trade Gap $566.0 billion, Largest Since 2008

By Kevin Kastner, Holly Stokes and Sara Haire

     WASHINGTON (MNI) - The U.S. international trade gap widened to 

$53.1 billion in December, a larger gap than the $52.0 billion deficit 

expected and following a virtually unrevised $50.4 billion gap in 

November, data released by the Commerce Department Tuesday morning 

showed. 

     The wider trade gap reflected record levels for both imports and 

exports, with the import gain larger this month. For 2017 as whole, the 

trade gap hit $566.0 billion, much larger than $504.8 billion in 2016 

and the largest annual gap since $708.7 billion in 2008. 

--CENSUS GAP WIDER THAN ADVANCE

     The revised Census goods gap reported Tuesday was wider than the 

advance estimate of $71.6 billion, coming in at $72.3 billion. The 

advance estimate was used when calculating advance fourth quarter GDP, 

so there could be a revision to a larger net export component with the 

GDP report at the end of this month.

     The overall BOP goods gap widened to $73.3 billion from $70.8 

billion in November, while the services surplus narrowed slightly to 

$20.2 billion from $20.3 billion in November. 

     The chained goods gap widened to $68.4 billion from $66.5 billion 

in November, putting the fourth quarter average at $66.8 billion, much 

wider than the $62.0 billion average gap for the third quarter. 

     The petroleum gap narrowed to $3.3 billion in December from $4.5 

billion in November, with exports up and imports down. The nonpetroleum 

gap widened to $69.0 billion from $65.3 billion. 

--CELL PHONES LIFT IMPORTS

     Imports jumped on a $3.2 billion surge in consumer goods, with a 

$1.7 billion jump in cell phone imports due to the iPhone. There were 

also gains for autos (+$1.1b), capital goods (+$0.8b), industrial 

supplies (+$0.6b, but crude oil -$0.6b), and food, feeds, and beverages 

(+$0.2b). 

     Exports rose on increases in industrial supplies (+$1.5b), capital 

goods (+$1.2b, aircraft +$0.8b), and food (+$0.5b) offset by consumer 

goods (-$0.2b) and autos (-$0.1b). The gain in industrial supply 

exports was widespread across the components, suggesting a boost in 

manufacturing activity.

     The unadjusted trade gap with the European Union widened to a 

record level, while the gap with Canada widened modestly. There were 

narrower gaps with China, Japan, and Mexico. 

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