US trade deficit widens sharply in December

America's total trade deficit jumped at the end of 2018, as the shortfall in its trade on goods yawned wider.

The total trade deficit in goods and services increased by 18.8% in December to reach -$59.8bn, the Department of Commerce said, as export growth failed to keep up with that for imports.

That was the worst reading since 2008, although as a proportion of GDP it was much smaller.

Sales overseas fell by 1.9% versus the prior month, hitting $205.1bn even as purchases from abroad rose by 2.1% to $264.9bn.

A deteriorating balance in the country's trade in goods was the chief reason behind the worsening trade picture, as Americans continued to buy foreign-made computers and their accessories but sales of capital goods, including those of civilian aircraft, dropped.

Combined, those two trends helped push the nation's deficit in goods trade up by $9.0bn to $81.5bn.

The politically-contentious trade deficit with the People's Republic of China widened by $3.2bn in December to reach -$38.7bn, as imports from the Asian giant jumped by $3.6bn.

In parallel, the bilateral trade deficit with Mexico rose by $2.1bn to $8.8bn although that with India shrank by $0.4bn to $1.4bn.