By CountingPips.com
The United States trade deficit increased by slightly more than expected in December as a result of increased import levels, according to a release by the Commerce Department today. The U.S. trade deficit rose by $2.3 billion in December to a total shortfall of $40.6 billion following a revised deficit of $38.3 billion in November.
The trade data just surpassed market forecasts that were expecting a deficit of approximately $40.4 billion for the month.
The increased deficit was the result of a bigger increase in imports compared to the rise in exports for the month. Imports of goods and services rose to a total of $203.5 billion compared with a total of $198.5 billion in November for an increase of $5.1 billion.
The U.S. exported a total of $163.0 billion worth of goods and services in December which was an increase of $2.8 billion from November’s total.
The politically sensitive U.S. trade deficit with China declined in December with a $20.7 billion shortfall following a deficit of $25.6 billion in November. Other notable U.S. trade deficits were with OPEC at $8.3 billion, the European Union at $6.6 billion, Mexico at $4.7 billion and Japan at $5.9 billion.
The U.S. trade surpluses with other countries for December included Hong Kong at $2.2 billion, Singapore at $1.3 billion, Australia at $1.2 billion and Egypt at $0.7 billion.
U.S. Dollar mixed in forex trading
The U.S. dollar has been mixed in morning trading in the forex markets today while the American stock markets have opened slightly lower. The dollar has gained ground versus the euro, British pound sterling, Swiss franc and the New Zealand dollar while declining against the Australian dollar, Japanese yen and the Canadian dollar, according to currency data by Oanda.
The U.S. stock markets, meanwhile, are slightly down today with the Dow Jones following by approximately 14 points, the Nasdaq down by approximately 4 points and the S&P 500 lower by just around 2 points at time of writing.
Oil has traded lower by $0.38 to $86.35 per barrel while gold futures have edged higher by $1.90 to the $1363.80 per ounce level.
