11 Feb 2010

Increase in US trade deficit

6:50 am on 11 February 2010

The US trade deficit rose to $US40.2 billion in December, partly due to a 14.8% increase in oil imports.

The December deficit was 10% higher than in November and the largest for 12 months.

The Commerce Department said exports totalled $US142.7 billion dollars while imports totalled $182.9bn.

But for the whole of 2009, the deficit totalled $US380.7 billion, the smallest in eight years.

In December, exports of goods and services rose for the eighth consecutive month, climbing 3.3%, following strong sales of industrial materials and US-made vehicles and parts.

The BBC reports a recent decline in the value of the dollar against the euro and other major currencies has helped to make US goods more competitive on overseas markets.

Imports were up 4.8% in December, with oil imports rising to their highest level since October 2008.