According to a report released jointly by the U.S. Census Bureau and the U.S. Bureau of Economic Analysis on February 8, the goods and services trade deficit declined to $38.5 billion in December, down sharply from $48.6 billion in November. The narrowing of the trade gap was driven by both a $3.9 billion increase in exports and a $6.2 billion decrease in imports. This substantial decline in the trade gap was unexpected by most analysts, and marks the largest deficit contraction in almost four years. A number of analysts have pointed out that this report signals that the federal government’s preliminary gross domestic product (GDP) estimate may be revised to show that the economy grew slightly in the fourth quarter of 2012.

Link: News Release