The U.S. trade deficit jumped unexpectedly in December to its highest level in 12 months, fueled by the highest oil prices and oil imports since 2008, the government reported Wednesday. The Commerce Department said the December trade deficit rose 10.4 percent from November to $40.2 billion. The imbalance was much bigger than the $36 billion deficit expected by economists. In December, both U.S. exports and imports gained. Exports of U.S. goods and services rose for the eighth consecutive month, climbing 3.3 percent to $142.70 billion, reflecting strong gains in sales of commercial aircraft, industrial machinery, and autos and auto parts. Imports rose 4.8 percent in December to $182.88 billion, led by a 14.8 percent jump in oil imports, which rose to the highest level since October 2008. The trade deficit with China fell in December to $18.1 billion and totaled $226.8 billion for the year, down from a record $268 billion in 2008. U.S. exports to China in December rose to a record high of $8.4 billion. The December deficit was the biggest since $41.9 billion in December 2008. The deficit, which hit a nine-year low of $25.8 billion in May, has been rising in recent months as the U.S. economy has been recovering from the deepest recession since the 1930s and demand for imports rebounds. For all of 2009, the trade deficit was $380.7 billion, the smallest imbalance in eight years, as a deep recession limited demand for imports. However, economists believe the deficit will rise this year as U.S. demand for imports outpaces U.S. export sales.
