WASHINGTON: The US trade deficit grew in December as imports rose at the fastest pace since June, while the politically sensitive gap with China hit a record for the year, official data showed Friday.
Despite a solid rise in US exports, the data showed that a surge in consumer spending and a jump in commodity prices help hike the country's imports bill.
The Commerce Department reported the country's trade deficit in goods and services rose to a seasonally adjusted $40.6 billion, from $38.3 billion in November.
The rise was a tick higher than the $40.4 billion expected by most analysts, but remained below the 2010 peak of $50.0 billion in June.
Both import and export volumes rose, reflecting growth in a recovering global economy led by China and other major emerging economies.
"Continued strength in the global economy, especially in Asia, is likely to keep exports on its recent impressive trajectory while the expected moderation in consumer spending -- after an unusually strong fourth quarter -- is likely to cool import growth," said David Resler at Nomura Globa Economics.
President Barack Obama's plan to double exports by 2015 to help to spur jobs creation appeared to get a boost after December exports surged to the highest level in more than two and a half years.
The US sold $163.0 billion in goods and services to foreign countries in December, up 1.8 percent from the prior month.
Exports of goods, at $115.5 billion, were the strongest since August 2008, the month before the Lehman Brothers bankruptcy brought the nation's troubled financial system to the brink of collapse.
But imports increased at the fastest pace since June, by 2.6 percent to $203.5 billion, crossing the $200 billion threshold for the first time since that month.
Amid rising oil and commodity prices, imports of foods, feeds and beverages hit an all-time peak of $8.0 billion.
Joel Naroff of Naroff Economic Advisors noted that more than 80 percent of the import goods rise came from crude oil, petroleum and fuel oil purchases.
"Rising energy costs are bleeding the economy," he said.
Though the trade gap with China shrank 19 percent to $20.7 billion, for all of 2010, it swelled to $273.1 billion, topping the 2008 record of $268.0 billion.
For the second year running China surpassed Canada as the largest seller of goods to the United States.
The report was likely to fuel US accusations that China deliberately keeps the yuan currency undervalued to boost exports.
While the Treasury Department cleared China of charges of currency manipulation a week ago, it still urged Beijing to allow the yuan to trade more freely, and in Congress several lawmakers said this week they would revive legislation to punish China for alleged unfair trade practices.
For all of 2010, the US trade deficit of $497.8 billion was sharply bigger than the prior year's $374.9 billion, but well below the 2008 level of $698.8 billion.
Obama's pledge in January 2010 to double exports between 2009 and 2014 appeared to be on track after exports rose 16.6 percent last year.
US exports made strong gains last year, rising 21.6 percent with Canada and 26.7 percent with Mexico.
To fast-growing emerging economies, exports surged 32.2 percent with China and 35.8 percent with South Korea, while exports to Brazil soared 35.5 percent.
In low-growth Europe, however, exports were up 9.0 percent to the eurozone, led by an 11.3 percent rise with Germany, the biggest economy.
Exports to Japan rose a solid 18.4 percent.
International trade was one of the most important drivers of the economy in the final quarter, US data showed.
Gross domestic product grew 3.2 percent from a year ago in the October-December period, thanks to an estimated contribution from exports of 3.5 percentage points.
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