Trade Deficit in U.S. Increased to $40.2 Billion in December

[The Northerner]

Source: Bloomberg

Feb. 10 (Bloomberg) -- The trade deficit in the U.S. unexpectedly widened in December, reflecting a jump in petroleum imports that swamped an eighth consecutive gain in exports.

The gap widened to $40.2 billion during the month, the biggest in a year, from $36.4 billion in November, according to Commerce Department data released today in Washington. Imports increased 8.4 percent and exports climbed to the highest level since October 2008.

Faster economic growth in emerging countries and a drop in the dollar’s value that is making American goods more competitive may propel gains in sales overseas that will spur further gains in U.S. manufacturing. Efforts to rebuild inventories will probably also draw in goods from abroad, giving global trade a lift.

“We’re at a stage of the recovery where you expect both exports and imports to rise,” said Ward McCarthy, chief financial economist at Jefferies & Co. in New York, who forecast the deficit would widen. “The good news is when imports and exports are rising, it is a sign you have economic growth.”

Economists forecast the deficit would narrow to $35.8 billion from a previously estimated $36.4 billion in November, according to the median of 78 projections in a Bloomberg News survey. Estimates ranged from gaps of $31 billion to $40 billion.

Read more: http://www.bloombeg.com/apps/news?pid=20601068&sid=adXv0qR6vU1o

[pasto76]

1. awesome, thats not even a years worth of operations in Iraq

no discussion of the budget is legit without factoring in the insane expense that has been the Iraq war.

[Beavker]

2. Petroleum Imports

Keep fighting the Green/Renewable/Sustainable resources GOPigs and Blue Dogs.

Funny, a friend of mine is taking some Real Estate classes and said his right wing instructor said he hates Green Tech because it is "all about the money". I presume he was stating this because he thinks it's hypocritical of the Greenlings to push this as saving the planet but are really only after a buck. Really?

If it really was a big money maker, you think the GOPigs would be fighting it, since it's their only motivation for doing anything?
And if it were their motivation, to make money, wouldn't that be a win/win situation?

What a fucking buffoon.