WASHINGTON — The U.S. international trade gap widened to $53.1 billion in December, a larger gap than the $52.0 billion deficit expected and following a virtually unrevised $50.4 billion gap in November, data released by the Commerce Department Tuesday morning showed.
The wider trade gap reflected record levels for both imports and exports, with the import gain larger this month. For 2017 as whole, the trade gap hit $566.0 billion, much larger than $504.8 billion in 2016 and the largest annual gap since $708.7 billion in 2008.
The revised Census goods gap reported Tuesday was wider than the advance estimate of $71.6 billion, coming in at $72.3 billion. The advance estimate was used when calculating advance fourth quarter GDP, so there could be a revision to a larger net export component with the GDP report at the end of this month.
The overall BOP goods gap widened to $73.3 billion from $70.8 billion in November, while the services surplus narrowed slightly to $20.2 billion from $20.3 billion in November.
The chained goods gap widened to $68.4 billion from $66.5 billion in November, putting the fourth quarter average at $66.8 billion, much wider than the $62.0 billion average gap for the third quarter.
The petroleum gap narrowed to $3.3 billion in December from $4.5 billion in November, with exports up and imports down. The nonpetroleum gap widened to $69.0 billion from $65.3 billion.
Imports jumped on a $3.2 billion surge in consumer goods, with a $1.7 billion jump in cell phone imports due to the iPhone. There were also gains for autos (+$1.1 billion), capital goods (+$800 million), industrial supplies (+$600 million, but crude oil -$600 million), and food, feeds, and beverages (+$200 million).
Exports rose on increases in industrial supplies (+$1.5 billion), capital goods (+$1.2 billion, aircraft +$800 million), and food (+$500 million) offset by consumer goods (-$200 million) and autos (-$100 million). The gain in industrial supply exports was widespread across the components, suggesting a boost in manufacturing activity.
The unadjusted trade gap with the European Union widened to a record level, while the gap with Canada widened modestly. There were narrower gaps with China, Japan, and Mexico.
