The U.S. trade deficit widened sharply in December to its highest level in more than two years as imports climbed to a record level and exports fell, the government reported Thursday. The Commerce Department said the trade deficit jumped 17.1 percent to $46.6 billion in December, the biggest imbalance since November 2012. It was the biggest percentage increase since mid-2009. Imports rose 2.2 percent to $241.4 billion, with imports of non-petroleum products surging to a record high, signaling strength in the domestic economy as well as strength in the U.S. dollar. Exports fell 0.8 percent to $194.9 billion. Exports have been limited by slowing growth in Asia and Europe, the stronger dollar, and a labor dispute at U.S. west coast ports, which has been cited by some manufacturers as causing delays in the movement of goods. Exports to Canada and Mexico - the main U.S. trading partners - fell in December. Exports to Japan, China, and the European Union rose. The trade deficit with China fell 5.5 percent to $28.3 billion. For all of 2014, the trade deficit rose 6 percent to $505 billion from $476.4 billion in 2013. Economists expect the deficit to widen further in 2015 as strong growth in the United States increases demand for imports while weak growth overseas and a rising dollar continue to depress exports.
