Trade deficit falls 4% as recession cuts into imports

WASHINGTON -- The U.S. trade deficit fell to the lowest level in nearly six years in December as the recession depressed demand for imports.

The trade deficit for all of 2008 fell for a second year, and economists expect an even bigger decline this year.

The Commerce Department says the deficit in December fell 4% to $39.9 billion, from $41.6 billion in November. It was slightly higher than the $36 billion deficit economists expected.

For the year, the deficit shrank 3.3% to $677.1 billion. It was the second straight annual decline after the deficit posted records for five straight years.