US goods-trade gap widens to fresh record as imports jump

[WASHINGTON] 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 US$101 billion last month from a revised US$98 billion in November, according to Commerce Department data released on Wednesday. The figure exceeded all estimates in a Bloomberg survey of economists, and the data aren't 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 strained 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 per cent to a fresh high US$258.3 billion, led by a record value of consumer goods. Capital equipment and motor vehicles imports also picked up. Exports advanced to US$157.3 billion.

The Commerce Department's report also showed US wholesale stockpiles increased 2.1 per cent, while retail inventories surged a record 4.4 per cent. These figures will be used by economists to tweak their estimates for fourth-quarter gross domestic product, 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 Feb 8. BLOOMBERG