US Trade Deficit Jumps 1.8% in December to Close the Year at a Record-High

Source: Bureau of Economic Analysis 

The US trade deficit rose by 1.8% or $1.4 billion in December to $80.7 billion, with the shortfall fueled by a higher rise in imports. SPY is down -0.14%, DXY is up +0.19%.

• Imports rose 1.6% to $308.9 billion, higher than a 1.5% increase in exports, which tapped $228.1 billion in the last month of the year.
• The December deficit reflected a $3.2 billion increase in goods deficit, which reached $101.4 billion, marginally offset by a $1.8 billion gain in services surplus, which reached $20.7 billion.
• On a three-month moving average, the trade deficit declined by less than $0.1 billion to $75.5 billion. On a year-over-year basis, the deficit rose by $9.9 billion in December. 
• For 2021, the trade deficit was $859.1 billion, an increase of $182.4 billion from the prior year and the highest on record.