This release contains sensitive economic data not to be released before 8:30 a.m. Friday, February 19, 1999 CB-99-31 Press Copy FT-900 (98-12) 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 1998 Goods and Services The Bureau of the Census and the Bureau of Economic Analysis, through the Department of Commerce, announced today that total December exports of $78.5 billion and imports of $92.3 billion resulted in a goods and services deficit of $13.8 billion, $1.5 billion less than the $15.3 billion in November, revised. December exports were $0.5 billion less than November exports of $79.0 billion. December imports were $1.9 billion less than November imports of $94.2 billion. In December, the goods deficit decreased $1.3 billion from November to $20.3 billion, and the services surplus increased $0.1 billion to $6.5 billion. Exports of goods decreased to $56.6 billion from $57.1 billion, and imports of goods decreased to $76.9 billion from $78.8 billion. Exports of services increased to $21.9 billion from $21.8 billion and imports of services of $15.4 billion were virtually unchanged. Goods The November to December change in exports of goods reflected decreases in industrial supplies and materials of $0.7 billion (primarily nonmonetary gold), other goods ($0.5 billion), and automotive vehicles, parts, and engines ($0.3 billion). Increases occurred in capital goods ($0.3 billion) and foods, feeds, and beverages ($0.3 billion). Consumer goods were virtually unchanged. The November to December change in imports of goods reflected decreases in industrial supplies and materials of $1.0 billion (primarily crude oil) and capital goods ($1.0 billion). Increases occurred in foods, feeds, and beverages ($0.2 billion) and automotive vehicles, parts, and engines ($0.1 billion). Other goods and consumer goods were virtually unchanged. 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. Services Services exports increased $0.1 billion from November to December. The largest increase was other private services, which more than accounted for the overall increase. Changes to the other categories of services exports were small and largely offsetting. Services imports in December were virtually the same as in November. Small decreases in several categories of services imports were partly offset by small increases in others. Goods and Services Moving Average For the three months ending in December, exports of goods and services averaged $79.2 billion, while imports of goods and services averaged $93.4 billion, resulting in an average trade deficit of $14.2 billion. For the three months ending in November, the average trade deficit was $14.5 billion, reflecting average exports of $78.8 billion and average imports of $93.3 billion. Selected Not Seasonally Adjusted Goods Details The December figures showed surpluses, in billions of dollars, with Brazil $0.6 (for November $0.5), Australia $0.4 ($0.5), Hong Kong $0.3 ($0.2), Korea $0.3 (-$0.5), Egypt $0.3 ($0.3) and Argentina $0.3 ($0.2). Deficits were recorded, in billions of dollars, with Japan -$5.9 (-$5.8), China -$4.0 (-$5.0), Western Europe -$3.4 (-$3.0), Canada -$2.2 (-$1.7), Mexico -$1.3 (-$1.2), Taiwan -$1.2 (-$1.1), and OPEC -$0.1 ($0.3). Advanced technology products (ATP) exports were $19.0 billion in December and imports were $13.7 billion, resulting in a surplus of $5.3 billion. December exports were $2.4 billion more than the $16.5 billion in November, while imports were $0.2 billion less than the $13.9 billion in November. Revisions Goods carry-over in December was $1.1 billion (1.9 percent) for exports and $1.1 billion (1.4 percent) for imports. For November, revised export carry-over was $0.1 billion (0.2 percent), revised down from $0.8 billion (1.4 percent). For November, revised import carry-over was $0.2 billion (0.3 percent), revised down from $1.0 billion (1.3 percent). Services exports for November were virtually unrevised at $21.8 billion. Services imports for November were virtually unrevised at $15.4 billion. Annual Summary for 1998 For 1998, exports of $931.3 billion and imports of $1,099.9 billion resulted in a goods and services deficit of $168.6 billion, $58.4 billion more than the 1997 deficit of $110.2 billion. For goods, exports were $671.1 billion and imports were $919.0 billion, resulting in a goods deficit of $248.0 billion, $50.0 billion more than the 1997 deficit of $198.0 billion. For services, exports were $260.3 billion and imports were $180.9 billion, resulting in a services surplus of $79.4 billion, $8.4 billion less than the 1997 surplus of $87.7 billion. For 1998, exports of goods were down $8.3 billion from 1997. The largest decreases were in industrial supplies and materials of $10.3 billion (petroleum products, finished textiles supplies, and organic chemicals decreased the most) and foods, feeds, and beverages of $5.1 billion (soybeans and corn decreased the most). Capital goods increased $5.0 billion (the increase was more than accounted for by an increase in civilian aircraft). For 1998, imports of goods were up $41.8 billion from 1997. The largest increases were in consumer goods of $22.6 billion (apparel products and pharmaceutical products increased the most) and capital goods of $16.2 billion (telecommunications equipment, civilian aircraft, and computer accessories increased the most). Industrial supplies and materials decreased $13.4 billion (the decrease was more than accounted for by a decrease in crude oil). For 1998, exports of services were up $2.0 billion from 1997. Increases in other private services ($6.6 billion), mostly business, professional, and technical services and financial services, and in royalties and license fees ($1.2 billion) were largely offset by decreases in travel ($2.4 billion, attributable to a drop in foreign residence traveling to the United States), transfers under U.S. military sales contracts ($1.3 billion), other transportation ($1.1 billion), which is comprised of freight and port expenditures in the United States, and passenger fares ($0.9 billion). U.S. Government miscellaneous services were virtually unchanged. For 1998, imports of services were up $10.3 billion from 1997. Increases in other private services ($4.4 billion), travel ($2.1 billion, attributable to an increase in U.S. residence traveling abroad), and royalties and license fees ($1.5 billion) accounted for most of the increase in total services imports. Smaller increases occurred in other transportation ($1.0 billion), which is comprised of freight and port expenditures abroad, direct defense expenditures ($0.8 billion), and passenger fares ($0.5 billion). U.S. Government miscellaneous services were virtually unchanged. For detailed 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............................................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 - - BLANK PAGE - - SOURCE: Report FT900 (CB-99-31), Bureau of the Census, Foreign Trade Division, December 1998. For more information, contact Haydn R. Mearkle (301-457-2246) or Richard M. Preuss (301-457-2311), Foreign Trade Division.