U.S. Trade Deficit Narrowed Slightly In Fourth Quarter
WASHINGTON -- The nation's merchandise trade deficit, calculated on a balance-of-payments basis, narrowed slightly in the fourth quarter, the Commerce Department said.</br></br>While exports and imports both set records, exports expanded at a much faster pace.</br></br>The fourth-quarter deficit was $40.17 billion, 0.5% narrower than the third quarter's $40.37 billion. Exports rose 6% to $69.06 billion; farm exports fell, while other exports grew by 8%. Imports rose 3.5% to $109.23 billion. Oil imports fell, but other imports more than offset the decline by climbing 5.6%.</br></br>After adjusting for inflation, the improvement was more substantial, with the deficit narrowing 2.8%. Inflation-adjusted exports rose 5.3%, with nonfarm exports increasing 7.8%. Imports rose 2.2%, and imports other than oil were up 4.8%.</br></br>For all of 1987, the deficit -- before removing the effects of inflation -- widened 10.3% to $159.2 billion from $144.34 billion. Exports were up 11.8% to $250.81 billion. Imports were up 11.2% to $410.02 billion.