WASHINGTON – The U.S. international trade deficit increased to a seasonally adjusted $40.6 billion in December, the largest increase in four months, while trade in 2010 revived as exports and imports increased by a record dollar amount, the Commerce Department reported Friday.
The deficit increased 9.4% from an unrevised $38.3 billion deficit in November. It was the largest monthly increase since August.
Exports increased by $2.8 billion, or 1.8%, in December and have increased for four straight months. Exports of industrial supplies and capital goods both increased to the highest levels since August 2008. Total non-petroleum exports were the highest since July 2008.
Imports increased by $5.1 billion, or 2.6%. A resurgent demand for foreign goods, which increased to $168.0 billion – the highest since October 2008, pushed imports higher. Total imports have increased for three consecutive months.
Imports of petroleum, which languished over the last two years amid the economic downturn, increased to their highest level since October 2008. Additionally, the December average price of an imported barrel of crude oil was $79.78 – the highest price since October 2008 when it was $91.73. The average price of imported oil has steadily increased from a low of $39.14 per barrel reached in February 2009.
Economists expected a $40.5 billion December trade deficit, according to the median estimate from Thomson Reuters.
Import and export values have rebounded from recent lows reached in the spring of 2009 amid the recession. In 2010, trade roared back to life. Exports increased by $261.0 billion, or 16.6%. Imports jumped by $384.0 billion, or 19.7%. Both imports and exports increased in 2010 by the largest dollar on record dating back to 1960.
The 2010 trade deficit increased to $497.8 billion from $374.9 billion. The deficit totaled $698.8 billion in 2008 and reached a record high of $759.2 billion in 2006.
As a percentage of gross domestic product, the trade deficit was 3.4% of GDP in 2010, up from 2.7% in 2009.
Last year’s trade deficit with China totaled $273.1 billion – the largest deficit on record. In December, U.S. exports increased to $10.1 billion, a record high.
