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30 November 2023

US trade gap swells 33% in 2010

By Reuters

The US trade deficit widened in December to its highest level in four months, the US government said on Friday in a report that also showed the annual trade gap expanded nearly 33 per cent in 2010 as imports from China hit record levels.

The December trade deficit grew nearly 6 per cent to $40.6 billion, just slightly higher than a consensus estimate of Wall Street analysts as the average price for imported oil leapt to its highest level since October 2008.

Overall imports of goods and services were also their highest since October 2008, in a sign that consumers and businesses are spending more as the US economy picks up steam.

Exports of goods and services were the highest since July 2008, the month that they hit their peak before beginning a precipitious drop caused by the global financial crisis.

US goods exports to China grew to a record $10.1 billion in December and also were a record $91.9 billion for the year.

But that strong finish was swamped by record US imports from China of $364.9 billion for the entire year, which pushed the closely watched trade gap with that country to a record $273.1 billion.

Rising oil prices also helped widen the US trade deficit in 2010. The average price for imported oil jumped to $74.66 per barrel, from $56.93 in 2009.

Imports of consumer goods and foods, feeds and beverages also set records in 2010.

Overall, US imports of goods and services grew 19.7 per cent in 2010 to $2.33 trillion dollars.
US exports grew 16.6 per cent to $1.83 trillion, a pace that if maintained would allow the United States to reach President Barack Obama's goal of doubling exports by 2013.

US exports of services, industrial supplies, consumer goods and petroleum all set records.

The strong services performance pushed the US trade surplus for services to a record $148.7 billion in 2010.