The US trade gap widened slightly in December to the third-highest level on record and pushed the annual deficit to a record $725.8 billion, the Commerce Department said today.
The December deficit totalled $65.7 billion, up 1.5 per cent from a slightly revised $64.7 billion in November.
Wall Street analysts had expected high oil import prices and inventory rebuilding to keep the monthly trade gap near $65 billion.
Both US imports and exports set records in December in a sign of a strong consumer demand at home and improving growth in overseas markets that have lagged behind the United States.
US exports increased 2.1 per cent in December to $111.5 billion, led by record levels of capital goods, auto and auto parts and consumer goods.
Imports rose 1.9 per cent to $177.2 billion with records in several categories, including capital goods, food and beverages, and animal feed.
The politically sensitive trade gap with China totalled a record $201.6 billion, up 24.5 per cent from 2004. Although US exports to China were a record $41.8 billion, they were swamped by record imports of $243.5 billion.