Wider-than-Expected U.S. Trade Deficit in December Could Drag 4Q GDP

Cargo containers sit idle at the Port of Los Angeles as a back-log of over 30 container ships sit anchored outside the Port in Los Angeles, California, February 18, 2015. (Photo: Reuters)

The U.S. trade deficit in December widened by $53.1 billion in December, up $2.7 billion from $50.4 billion in November and more than the $51.9 billion median forecast. The U.S. Census and Bureau of Economic Analysis (BEA) joint report could be a potential drag on revisions to fourth quarter (4Q) gross domestic product (GDP).

The good news is that December exports were $203.4 billion, $3.5 billion (1.8%) more than November exports. The bad news is that December imports were $256.5 billion, $6.2 billion (2.9%) more than November imports.