US: Trade deficit widens in December as imports rebound – Wells Fargo
On Wednesday, the trade balance report was released in the US, showing a trade deficit of 43.7 billion. Analysts at Wells Fargo, highlight the 2.7% rebound in imports during December. They point out the annual trade deficit narrowed in 2019 for the first time in six years.
“Exports rose 0.8% in December, and imports jumped 2.7% after declining the previous three months. The rebound in imports came from nearly all major categories.”
“For the quarter as a whole, imports declined while exports rose, which resulted in a large boost to fourth quarter GDP growth.”
“The recent weakness in imports was at least in part due to tariffs, as importers brought forward consumer goods imports, evidenced by the August import peak and subsequent drop the next three months. Consumer goods imports rose 1.3% in December and should continue to rebound in coming months.”