Global economic fundamentals are the power source to drive the deficit to new heights. The reasons are: oil prices are going up, foreign growth is still relatively weak and U.S. growth is strong. There is no reason to predict a lower deficit.

The Commerce Department lowered its estimate of the December trade deficit to $65.1 billion from the initial one of $65.7 billion. The deficit for 2005 was revised down to a record of $723.6 billion from the previous one of $725.8 billion.

In December, imports advanced faster than exports.
Imports advanced 3.5% to $182.9 billion. December exports advanced 2.5% to $114.4 billion.
Imports of goods alone increased 3.9% to a record $155.1 billion, with large gains coming in industrial supplies including oil, capital goods, auto and auto parts and consumer goods.
Meanwhile, exports of goods alone advanced 3.3% to $81.7 billion. The United States exported a record amount of industrial supplies, capital goods and autos.

The petroleum deficit grew by 3.3% to $22.6 billion in January.

The deficit with China grew to $17.91 billion in January from $15.26 billion in the same month last year and $16.30 billion in December.


The full report is available at: http://www.census.gov/foreign-trade/www/

The full text of the release on BEA's Web site can be found at: http://www.bea.gov/bea/newsrel/tradnewsrelease.htm