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.
