US trade deficit widens in 2022 to record on strong imports

The United States international trade deficit in goods and services rose by $6.4 billion to $67.4 billion in December, the data published jointly by the US Census Bureau and the US Bureau of Economic Analysis revealed on Tuesday.

This reading came in better than the market expectation for a deficit of $68.5 billion.

The US trade gap widened to a record in 2022, though expanding less than expected in December, government data said Tuesday, capping off the year on robust imports and strong spending.

The overall trade gap grew $103.0 billion from 2021 to $948.1 billion last year, according to Commerce Department data, on a surge in goods imports ranging from crude oil to consumer items like pharmaceuticals and household products.

This marks the biggest deficit in government data dating back to 1960.

Analysts note that trade has been a swing factor in GDP growth over the last year, bogging it down in the early months of 2022 but providing a boost later on.

In December, the trade deficit expanded $6.4 billion to $67.4 billion, said the Commerce Department.

US imports rose $4.2 billion from November to December, hitting $317.6 billion on greater spending on consumer goods such as cell phones and other household goods as well as automotive vehicles.