The
trade deficit in the U.S. probably widened in December to a six-month high as
imports climbed faster than exports, economists said a report this week will
show.
The
gap grew to $48.5 billion from the $47.8 billion shortfall in November,
according to the median of 61 estimates in a News survey ahead of Commerce
Department figures on Feb. 10. Consumer sentiment held close to a one-year high
and firings were little changed, other reports may show.
Imports
will probably keep rising as an improving job market underpins consumer
spending, and businesses rebuild inventories and replace out dated equipment.
At the same time, demand from emerging markets is boosting sales at companies
like General Electric Co. (GE) and Caterpillar Inc. (CAT), buffering the
fallout from Europe’s debt crisis and helping to sustain exports.
Payrolls
climbed by 243,000 workers in January, the biggest increase in nine months, Labor Department figures showed on Feb. 3. The unemployment
rate fell to 8.3 percent, the lowest since February
2009.
Stocks
rallied after the report fueled optimism the economy
will withstand the European debt crisis. The Standard & Poor’s 500 Index
has increased for five straight weeks, the longest winning streak in a year.
The gauge is off to the best start to a year since 1987.
Rising
oil costs may lift the import bill this year. The price of Brent crude traded
on the ICE Futures Europe exchange in London was $114.54 as of last week, up
6.6 percent from $107.38 at the end of December.
Exporters
may continue to see gains. Caterpillar, the largest construction and mining
equipment maker, posted fourth-quarter profit that beat analysts’ estimates and
said prospects for global growth have improved. It also projects more orders as
pent-up demand is released and customers replace older products.