The U.S. trade deficit widened in December, reversing some of the prior month's sharp contraction, as imports rebounded and exports declined further.

The trade deficit increased 10.5% to $67.4 billion, the Commerce Department said on Tuesday. Data for November was revised to show the trade gap narrowing to $61.0 billion instead of $61.5 billion as previously reported. The trade deficit widened to $948.1 billion in 2022 from $845.0 billion in 2021.

Imports increased 1.3% to $317.6 billion, with goods rising 1.8% to $258.8 billion. Exports fell 0.9% to $250.2 billion. Goods shipments dropped 1.7% to $168.1 billion, mostly reflecting a big decline in prices.

A smaller trade deficit was one of the contributors to the economy's 2.9% annualized growth pace in the fourth quarter.