Trade deficit widens to $40.6 billion in December

WASHINGTON (AP) — The trade deficit widened in December, closing out a year in which America's gap ballooned by the largest amount in a decade.

The deficit increased 5.9 percent in December to $40.6 billion, the Commerce Department reported today.

U.S. exports of goods and services rose to $163 billion, a 1.8 percent gain and the best showing since July 2008. Sales of industrial machinery, civilian aircraft and autos and auto parts led U.S. exports

But imports rose even faster. A 2.6 percent gain pushed total U.S. imports to $203.5 billion, the highest level since October 2008. The increase was led by a 16.8 percent rise in imported oil. The average price for a barrel of imported crude oil climbed to $79.78 in December, the highest point since crude imports averaged $91.73 per barrel in October 2008.

For all of 2010, the U.S. trade deficit rose to $497.8 billion, a 32.8 percent surge. It was the biggest annual percentage gain since 2000. In 2009, the deficit had fallen to the lowest point in eight years as demand for imports plunged.