WASHINGTON: The US trade deficit in goods widened to a record high in December amid increasing imports, indicating that trading is likely to remain an obstacle to economic growth in the fourth quarter in the fourth quarter.
But reports from the Ministry of Commerce on Wednesday also showed acceleration in the accumulation of inventory accumulation at retailers and wholesalers, which may compensate for the impact on gross domestic product from a larger trade gap.
“Strong demand and moving consumer preferences during a pandemic lead to a surge in imports that continue to exceed export and contribute to the highest of all time in the deficit,” said Rubeela Farooqi, US economist’s head at high frequency, new York.
The goods trade deficit rose 3.0% to the highest of $ 101.0 billion last month.
Trade gaps tend to remain great for a while because business continues to refill inventory.
Import goods increased by 2% to $ 258.3 billion, possibly the backlog on the port continued to be deleted.
Improved imports are driven by capital goods, motorized vehicles and consumer goods.
But imports of food and industrial supplies declined.
Export goods rose 1.4% to $ 157.3 billion.
There is an increase in exports of consumer goods, industrial supply, and motorized vehicles.
The export of capital goods also rises, but food exports fall.
This report was published before the fourth quarter GDP data Thursday Thursday.
Trading has been reduced from GDP growth for five straight quarters.
According to the Reuters survey of economists, the economy is likely to grow at the annual rate of 5.5% the last quarter, acceleration of the third quarter speed of 2.3%.
Inventory investment is likely to contribute a lot of acceleration anticipated in the growth of the last quarter GDP.
Last year’s growth was expected to be the strongest since 1984.
The Trade Department report showed retail inventories jumped 4.4% in December after an increase of 2.0% in November.
Motor vehicle supplies and parts jumped 6.8% after rising 4.3% in November.
They are hampered by global semi-conductor shortages, which have weakened motorized vehicle production.
Retail inventories do not include motorized vehicles accelerated 3.6% after rising 1.2% in November.
This component goes into the calculation of GDP growth.
Inventories on wholesalers increased 2.1% last month after advancing 1.7% in November.
There is an increase in shares of durable goods and cannot be used.
Inventory accumulation has been limited by global deficiency related to Covid-19, and a solid increase over the past two months offers hope that the worst supply chain disorder is behind.
“Most likely it will take the time for the supply chain problem to make it easier, which can maintain US goods inflation increases,” said Ryan Sweet, a senior economist at Moody’s Analytics in the West Chester, Pennsylvania.