US goods trade deficit hits $100bn for the first time as imports soar
Value of imports increased 2% to a fresh high of $258.3bn
The US merchandise trade deficit unexpectedly widened in December to a fresh record as imports continued to rise, outpacing shipments overseas.
The gap increased to $101bn in December from a revised $98bn in November, according to commerce department data released on Wednesday. The figure exceeded all estimates in a Bloomberg survey of economists, and the data is not adjusted for inflation.
The goods trade shortfall reached new records in 2021, consistent with solid consumer demand and business investment. US importers are struggling to meet demand as inventories remain lean and supply chains are straining to move unprecedented amounts of cargo. That’s also making it difficult for exporters to ship goods out of the country.
The value of imports increased 2% to a fresh high of $258.3bn, led by a record value of consumer goods. Capital equipment and motor vehicles imports also picked up. Exports advanced to $157.3bn.
“Trade flows will likely continue to be impacted by pandemic related disruptions in the near-term,” Rubeela Farooqi, chief US economist at High Frequency Economics, said in a note. “But imports and exports should eventually rebalance as these effects diminish and global economies come back online more completely.”
The commerce department’s report also showed US wholesale stockpiles increased 2.1%, while retail inventories surged a record 4.4%. These figures will be used by economists to tweak their estimates for fourth-quarter GDP, which is due Thursday.
A more complete trade picture for December that includes the balance on the services account will be released in the department’s final report due February 8.
Bloomberg News. More stories like this are available on bloomberg.com
Would you like to comment on this article or view other readers' comments?
Register (it’s quick and free) or sign in now.
Please read our Comment Policy before commenting.