By Courtney Schlisserman Feb. 10 (Bloomberg) -- The trade deficit in the U.S. unexpectedly widened in December, reflecting a jump in petroleum imports that swamped an eighth consecutive gain in exports. The gap widened to $40.2 billion during the month, the biggest in a year, from $36.4 billion in November, according to Commerce Department data released today in Washington. Imports increased 8.4 percent and exports climbed to the highest level since October 2008. Faster economic growth in emerging countries and a drop in the dollar’s value that is making American goods more competitive may propel gains in sales overseas that will spur further gains in U.S. manufacturing. Efforts to rebuild inventories will probably also draw in goods from abroad, giving global trade a lift. “We’re at a stage of the recovery where you expect both exports and imports to rise,” said Ward McCarthy, chief financial economist at Jefferies & Co. in New York, who forecast the deficit would widen. “The good news is when imports and exports are rising, it is a sign you have economic growth.” Economists forecast the deficit would narrow to $35.8 billion from a previously estimated $36.4 billion in November, according to the median of 78 projections in a Bloomberg News survey. Estimates ranged from gaps of $31 billion to $40 billion. Shares Little Changed Stock-index futures were little changed after the report. The contract on the Standard & Poor’s 500 Index was at 1,066.4 at 9:27 a.m. in New York compared with 1,066.2 late yesterday. The dollar dropped, falling to 89.45 yen from 89.69 yen late yesterday. For all 2009, the trade gap shrank to $380.7 billion, the smallest since 2001, from $695.9 billion the prior year. Excluding the influence of prices, which are the figures used to calculate gross domestic product, the trade gap increased to $43.7 billion in December from $40.9 billion the prior month. The increase may diminish the 0.5 percentage point contribution that trade made to economic growth last quarter when the government revises figures on gross domestic product later this month. Imports increased to $182.9 billion, a 13-month high, from $174.5 billion in November. Purchases of petroleum from overseas climbed to $28.1 billion, the most since October 2008, reflecting higher prices and higher volumes. Ex-Petroleum Gap Excluding petroleum, the trade gap was little changed at $16.7 billion compared with $16.5 billion in November. Exports increased to $142.7 billion in December, the highest level since October 2008, from $138.1 billion the prior month. The 3.3 percent gain was the biggest since March 2007. The increased was paced by sales of civilian aircraft, automobiles and part, petroleum products, cotton and industrial machines. Emerson Electric Co. and Dow Chemical Co. are among manufacturers benefiting from the recovery in global growth. Emerson, the maker of industrial equipment and garbage disposals, this month forecast fiscal 2010 profit that topped analysts’ estimates. Sales in the first fiscal quarter also topped estimates, partly driven by a 13 percent increase at the St. Louis-based company’s climate-technologies unit amid growth in Asia and the U.S. Dow, the largest U.S. chemical maker, this month reported fourth-quarter profit and sales that topped the average estimate of analysts surveyed by Bloomberg. Revenue in the Asia Pacific region jumped 27 percent as sales volumes rose 34 percent, Dow said. Revenue increased 34 percent in India, the Middle East and Africa and 6.5 percent in Latin America. “The same strong demand growth we’re witnessing in emerging geographies bodes well for global growth,” Chief Executive Officer Andrew Liveris said during a Feb. 2 call with analysts and investors. “We continue to closely monitor China’s overheating manufacturing engine for the potential for the creation of asset bubbles.” To contact the reporter on this story: Courtney Schlisserman in Washington at cschlisserma@bloomberg.net

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