US trade deficit unexpectedly widens in December, unemployment claims rise

The US trade deficit unexpectedly widened in December to the highest level since 2012 as imports increased despite lower energy costs, which will negatively affect the fourth-quarter growth revision later this month. According to the Commerce Department, the trade gap increased 17.1% to $46.6 billion, the largest since November 2012 and the biggest percentage increase since July 2009. November's shortfall on the trade balance was revised to $39.8 billion from a previously reported $39.0 billion. In December, imports rose 2.2% to $241.4 billion, with imports of non-petroleum products surging to a record high, a sign of strengthening in the domestic economy. Exports slipped 0.8% to $194.9 billion in December, being undermined by cooling growth in Asia and Europe, a strengthening Dollar. The government reported last week that the nation's economy rose at a 2.6% annual rate, with trade estimated to have deducted 1.02 percentage point from growth. US trade balance data was not the only negative news on Thursday. Initial jobless claims rose last week to a seasonally adjusted 278,000, following revised up 267,000 claims in the prior week. Nevertheless, the gauge remains at levels consistent with solid job growth.  The four-week moving average for claims, which evens out week-to-week volatility, dropped by 6,500 to 292,750 last week. The number of people filing continuing claims for benefits rose to 2.4 million for the week ended January 24.