MercoPress. South Atlantic News Agency

US trade deficit soars 33% in 2010 as China imports hit record level

Exports were the highest since July 2008

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

The December trade deficit grew nearly 6% to 40.6 billion USD, 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 U.S. 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 precipitous drop caused by the global financial crisis.

US goods exports to China grew to a record 10.1 billion USD in December and also were a record 91.9 billion USD 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 USD.

Rising oil prices also helped widen the US trade deficit in 2010. The average price for imported oil jumped to 74.66 USD per barrel, from 56.93 USD 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% in 2010 to 2.33 trillion USD.

US exports grew 16.6% to 1.83 trillion USD, 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 USD in 2010.