Trade for 2006

The BEA released its report today for U.S. International Trade in Goods and Services through December 2006. Here are some key points:

1. U.S. exports of goods increased by 14.42% in 2006 from $894 billion to $1,023 billion, thanks in part to the weak dollar and strong demand for our capital goods, industrial supplies and consumer goods.

2. U.S. imports of goods increased by 10.85% in 2006 from $1677 to $1859 billion.

3. U.S. exports of services increased by 8.8% (from $380b to $414b) vs. an 8.5% increase in service imports ($314b to $341b).

Despite the greater percentage change in exports vs. imports for both goods and services in 2006, the overall trade deficit increased by 6.7% to $764 billion in 2006, because the starting level of imported goods in 2005 ($1677 billion) was so much greater than the starting value for exported goods ($894 billion).