The broadest measure of the U.S. trade deficit widened to a record level in 2005, while U.S. retail sales lost ground in February.

The U.S. Commerce Department said today that the current-account deficit rose 20.5% to US$804.9 billion during 2005, an all-time high, from US$668.1 billion in 2004. The deficit widened to US$224.9 billion during the fourth quarter, up 21.3% from a revised US$185.4 billion in the third quarter.

The current account combines trade of goods and services, transfer payments, and investment flows.

A separate report from Commerce showed retail sales fell 1.3% in February as demand for new cars skidded by 4.6%. Retail sales had risen 2.9% in January, when record warmth drove shoppers to stores. Outside the auto sector, all other retail sales decreased by a more modest 0.4% in February. Sales excluding autos rose 2.6% in January — the largest such jump since 1992.


Meanwhile, business inventories increased by 0.4% in January to a seasonally adjusted US$1.310 trillion, after a 0.8% advance in December, the Commerce Department said today. December inventories were originally seen up 0.7%. Business sales advanced by 1.3%. The inventory-to-sales ratio slipped to 1.24 months in January from 1.25.