U.S. Trade Deficit Widens More Than Expected To $43.4 Billion In December

With imports rising and exports falling, the Commerce Department released a report on Friday showing that the U.S. trade deficit widened more than expected in December.

The report said the trade deficit widened to $43.4 billion in December from a revised $42.2 billion in November. The deficit had been expected to widen to $43.0 billion.

The wider than expected deficit was partly due to an increase in the value of imports, which crept up by 0.3 percent to $224.9 billion.

The Commerce Department pointed to increases in imports of automotive vehicles, parts, and engines and industrial supplies and materials.

Meanwhile, the value of exports edged down by 0.3 percent to $181.5 billion amid decreases in exports of automotive vehicles, parts, and engines, industrial supplies and materials, and foods, feeds, and beverages.

Paul Ashworth, Chief U.S. Economist at Capital Economics, said, "Those monthly changes were almost exactly in line with the BEA's assumptions used for the advance estimate of fourth-quarter GDP growth, so any revisions to net external demand should be trivial."

The report also said the goods deficit widened to $62.5 billion in December from $61.2 billion in November, while the services surplus inched up to $19.2 billion from $19.0 billion.