The U.S. Commerce Department reported on Friday that U.S. the goods and services trade deficit narrowed to $66.6 billion in December from a revised $69.0 billion in the previous month (originally a gap of $68.1 billion). 

Economists had expected a deficit of $65.7 billion.

According to the report, the December decline in the goods and services deficit reflected a drop in the goods deficit of $2.8 billion to $84.2 billion and a decrease in the services surplus of $0.4 billion to $17.5 billion.

In December, exports of goods and services from the U.S. rose 3.4 percent m-o-m to $190.0 billion, while imports surged 1.5 percent m-o-m to $256.6 billion, reflecting both the ongoing impact of the COVID-19 pandemic and the continued economic recovery from the steep declines earlier in the year.

For 2020, the goods and services deficit jumped 17.7 percent from 2019. Exports plunged 15.7 percent, while imports tumbled 9.5 percent.