U.S. trade deficit in goods rebounds in December after narrowing sharply in prior month

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U.S. trade deficit in goods rebounds in December after narrowing sharply in prior month
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The U.S. trade deficit in goods widened 8.8% to $90.3 billion in December, according to the Commerce Department’s advanced estimate. Economists polled by Econoday were looking for the deficit to widen to $88.5 billion.

The numbers: The U.S. trade deficit in goods widened 8.8% to $90.3 billion in December, according to the Commerce Department’s advanced estimate released Thursday.The advanced trade data is expressed in nominal terms, meaning it is not adjusted for inflation.Key details: Imports of goods rose to $257.1 billion in December led by autos and consumer goods.The report also showed a 0.1% gain in wholesale inventories. And advanced retail inventories were up 0.5%.

Big picture: The government estimated that the trade sector made a modest 0.6 percentage point contribution to fourth quarter growth after a sharp gain of 2.9 percentage points in the prior quarter. Market reaction: Stocks DJIA, -0.11% SPX, +0.18% were set to open higher on Thursday. The yield on the 10-year Treasury note TMUBMUSD10Y, 3.503% rose to 3.48%.

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