After making gains on the trade balance, the U.S. fell behind once again as the goods trade deficit widened to finish off 2018, according to new data from the Census Bureau.
In December, the goods trade deficit rose 12.8 percent to $79.5 billion. Exports tumbled 2.8 percent, driven by a sharp drop in shipments of capital goods, foods, and industrial supplies. Imports jumped 2.4 percent, buoyed by consumer goods, food, and capital goods.
Evidently, a stronger U.S. dollar, which is up two percent year-to-date, and slowing global economic demand impacted deficits.
Other data showed that retail inventories surged 0.9 percent after sliding 0.4 percent in November.
Meanwhile, fourth-quarter growth estimates came in at a two percent annualized rate, which comes a day before the official Q4 gross domestic product (GDP) report is released.
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