Sean Gallup/Getty Images
Image

US Trade Gap Widens to Highest Level Since 2012

Feb. 5, 2015
Overall in December, imports, excluding petroleum products, rose 2.2% to $241.4 billion. Exports fell 0.8% to $194.9 billion.

The trade deficit in the U.S. took a big leap in December, hitting its highest level in more than two years.

The Commerce Department report shows a hike of 17.1% to $46.6 billion. The percentage is the biggest jump since July of 2009.

That number could be revised down on lower energy costs, but according to Reuters, is still way off from analysts’ forecasts.

Overall in December, imports, excluding petroleum products, rose 2.2% to $241.4 billion. Exports fell 0.8% to $194.9 billion

One area making gains in exports is energy. Exports of petroleum products added $8.1 billion while imports fell by $35.6 billion. API Chief Economist John Felmy says the sector is transforming the trade balance:

“We’re importing less oil than at any time in nearly 30 years, consumers are saving billions on energy, and tens of thousands of U.S. workers have jobs producing petroleum and petroleum products for export. Growth in the U.S. oil and natural gas industry served as the central pillar of U.S. strength in the international market last year, helping to offset categories of trade where U.S. businesses lost ground.“

A breakdown of some key markets shows the monthly U.S. goods deficit with China grew in December to $30.4 billion, up from $29.9 billion in November.

In trade with Japan, the U.S. goods deficit rose in December to $5.7 billion, up from $5.5 billion in November.

Exports also dipped slightly to Canada and Mexico.

About the Author

Rob LaFrentz | Senior Content Producer

Rob LaFrentz is the Senior News Producer for IndustryWeek. A former Deputy Editor at the Chicago Tribune, Rob has years of experience covering all aspects of business, manufacturing, finance and other news.

Sponsored Recommendations

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!