U.S. INTERNATIONAL TRADE IN GOODS AND SERVICES: DECEMBER 1997 This release contains sensitive economic data not to be released before 8:30 a.m. Thursday,February 19, 1998 CB-98-26 Press Copy FT-900 (97-12) For information on goods contact: Bureau of the Census: Haydn R. Mearkle (301) 457-2246 Richard M. Preuss (301) 457-2311 For information on services contact: Bureau of Economic Analysis: Technical: Christopher Bach (202) 606-9545 Media: Larry Moran (202) 606-2649 U.S. INTERNATIONAL TRADE IN GOODS AND SERVICES December 1997 The Bureau of the Census and the Bureau of Economic Analysis, through the Department of Commerce, announced today that total December exports of $80.0 billion and imports of $90.8 billion resulted in a goods and services deficit of $10.8 billion, $2.1 billion more than the $8.7 billion in November, revised. December exports were $1.0 billion more than November exports of $79.0 billion. December imports were $3.2 billion more than November imports of $87.6 billion. In December, the goods deficit increased $1.9 billion from November to $17.6 billion, and the services surplus decreased $0.2 billion to $6.9 billion. Exports of goods increased to $58.7 billion from $57.6 billion, and imports of goods increased to $76.3 billion from $73.3 billion. Exports of services of $21.3 billion were virtually unchanged, and imports of services increased to $14.5 billion from $14.3 billion. The November to December change in exports of goods reflected increases in capital goods of $2.4 billion (primarily civilian aircraft) and other goods ($0.2 billion). Decreases occurred in automotive vehicles, parts, and engines of $1.0 billion; foods, feeds, and beverages ( $0.2 billion ); and consumer goods ($0.2 billion). Industrial supplies and materials were virtually unchanged. The November to December change in imports of goods reflected increases in capital goods of $1.1 billion (primarily civilian aircraft); consumer goods ($0.7 billion); automotive vehicles, parts, and engines ($0.4 billion); foods, feeds, and beverages ($0.3 billion); industrial supplies and materials ($0.2 billion); and other goods ($0.1 billion). Note: Total goods are reported on a balance of payments basis; commodity and country detail for goods are on a Census basis. Definitions are explained in the notes starting on page 26 of this release. For the three months ending in December, exports of goods and services averaged $79.7 billion, while imports of goods and services averaged $89.3 billion, resulting in an average trade deficit of $9.5 billion. For the three months ending in November, the average trade deficit was $9.7 billion, reflecting average exports of $79.1 billion and average imports of $88.8 billion. Services exports were virtually unchanged from November to December. Small decreases in several categories of services exports were largely offset by small increases in others. Services imports increased $0.1 billion from November to December, reflecting small increases in several categories. Selected Not Seasonally Adjusted Goods Details The December figures showed surpluses, in billions of dollars, with Brazil $0.8 (for November $0.8), Australia $0.6 ($0.6), Hong Kong $0.5 ($0.4), Argentina $0.4 ($0.5), and Egypt $0.2 ($0.2). Deficits were recorded, in billions of dollars, with Japan -$5.1 (-$4.2), China -$3.9 (-$4.1), Western Europe -$2.5 (-$1.5), Canada -$2.2 (-$1.5), Taiwan -$0.7 (-$1.0), Mexico -$0.6 (-$0.9), Korea -$0.3 (virtually zero), OPEC -$0.3 (-$1.4), and Singapore -$0.2 (-$0.1). Advanced technology products (ATP) exports were $17.6 billion in December and imports were $13.6 billion, resulting in a surplus of $4.0 billion, $1.3 billion more than the November surplus of $2.7 billion. December exports were $2.9 billion more than the $14.7 billion in November, while imports were $1.6 billion more than the $12.1 billion in November. Carry-over in December was $1.0 billion (1.7 percent) for exports and $1.3 billion (1.7 percent) for imports. For November, revised export carry-over was $0.3 billion (0.5 percent), revised down from $1.3 billion (2.2 percent). For November, revised import carry-over was $0.1 billion (0.1 percent), revised down from $0.8 billion (1.1 percent). Annual Summary for 1997 For 1997, exports of $932.3 billion and imports of $1,046.1 billion resulted in a goods and services deficit of $113.7 billion, $2.7 billion more than the 1996 deficit of $111.0 billion. For goods, exports were $678.3 billion and imports were $877.3 billion, resulting in a goods deficit of $198.9 billion. For services, exports were $254.0 billion and imports were $168.8 billion, resulting in a services surplus of $85.2 billion. For 1997, exports of goods were up $66.3 billion from 1996. The largest increases were in capital goods of $41.2 billion (civilian aircraft and computer accessories increased the most), industrial supplies and materials of $10.4 billion (chemical products increased the most), and automotive vehicles, parts, and engines of $8.4 billion. For 1997, imports of goods were up $74.0 billion from 1996. The largest increases were in capital goods of $25.1 billion (computer accessories increased the most), consumer goods of $21.9 billion (apparel products increased the most), and automotive vehicles, parts, and engines of $11.8 billion. For 1997, total services exports were up $17.2 billion from 1996. Increases in other private services ($9.4 billion), such as business, professional, and technical services, financial services, and educational services, and in travel ($5.0 billion) accounted for over 80 percent of the increase in total services exports. Smaller increases occurred in passenger fares ($1.3 billion), other transportation ($1.2 billion), and royalties and license fees ($0.5 billion). Transfers under U.S. military sales contracts and U.S. Government miscellaneous services changed little. For 1997, total services imports were up $12.2 billion from 1996. Increases in other private services ($4.8 billion) and travel ($4.0 billion) accounted for over 70 percent of the increase in total services imports. Smaller increases occurred in other transportation ($1.6 billion), passenger fares ($1.4 billion), and royalties and license fees ($0.3 billion). Direct defense expenditures and U.S. Government miscellaneous services were virtually unchanged. For descriptions of the types of transactions included in each of the services categories, see "Information on Goods and Services" starting on page 26 of this release. Seasonally Adjusted Exhibit 1 International Trade in Goods and Services 4 Exhibit 2 Goods and Services Centered Three - Month Moving Averages 5 Exhibit 3 U.S. Services by Major Category--Exports 6 Exhibit 4 U.S. Services by Major Category--Imports 7 Exhibit 5 U.S. Trade in Goods 8 Exhibit 6 Exports and Imports of Goods by Principal End-Use Category 9 Exhibit 7 Exports of Goods by End-Use Category and Commodity 10 Exhibit 8 Imports of Goods by End-Use Category and Commodity 12 Exhibit 9 Petroleum and Non-Petroleum End-Use Category Totals 14 Exhibit 10 Exports and Imports of Goods by Principal End-Use Category (Constant Dollars) 15 Exhibit 11 Exports, Imports, and Balance of Goods, Petroleum and Non- Petroleum End-Use Commodity Category Totals (Constant Dollars) 16 Not Seasonally Adjusted Exhibit 12 U.S. Trade in Goods 17 Exhibit 13 Exports and Imports of Goods by Principal End-Use Category 18 Exhibit 14 Exports, Imports, and Balance of Goods by Selected Countries and Areas - 1996 19 Exhibit 15 Exports and Imports of Goods by Principal SITC Commodity Groupings 21 Exhibit 16 Exports, Imports, and Balance of Advanced Technology Products 23 Exhibit 17 Imports of Energy - Related Petroleum Products, Including Crude Petroleum 24 Exhibit 18 Exports and Imports of Motor Vehicles and Parts By Selected Countries 25 Information on Goods and Services 26 SOURCE: Report FT900 (CB-98-26), Bureau of the Census, Foreign Trade Division, DECEMBER 1997. For more information, contact Haydn R. Mearkle (301-457-2246) or Richard M. Preuss (301-457-2311), Foreign Trade Division.