US trade deficit jumps 17.1 percent to $46.6 billion

WASHINGTON – The U.S. trade deficit in December jumped to the highest level in more than two years as exports fell and Americans bought a record amount of imports – a potentially worrisome development that could weigh on overall economic growth.

The deficit jumped 17.1 percent to $46.6 billion in December, resulting in the biggest imbalance since November 2012, the Commerce Department reported Thursday. The widening trade gap reflected a drop in exports, which retreated 0.8 percent to $194.9 billion. Meanwhile, imports soared 2.2 percent to $241.4 billion.

Economists were split on the implications of the bigger-than-expected December trade deficit. The government estimated last week that the overall economy grew at a moderate 2.6 percent rate in the final three months of 2014 after turning in a sizzling 5 percent growth rate in the July-September period.

The deficit for 2014 overall increased to $505 billion, up 6 percent from the 2013 deficit of $476.4 billion, the Commerce Department said. Economists expect the deficit to widen further in 2015 as strong growth in the United States boosts imports, while weak growth overseas and a rising dollar continue to depress exports.

The $505 billion deficit for the year was the largest imbalance since a $537.6 billion deficit in 2012.

The economy expanded 2.4 percent in 2014, with trade trimming growth by 0.2 percentage point.