The US trade deficit rose to its highest level in more than two years in December.

According to the latest figures from the US Commerce Department, it increased by 17.1% to $46.5 billion. The is the largest percentage increase since July 2009. Imports (excluding petroleum products) rose by 2.2% to $241.4 billion, while exports fell by 0.8% to $194.9 billion.

The monthly US goods deficit with China increased to $30.4 billion in December, up from $29.9 billion in November.

Scott Paul, the president of the Alliance for American Manufacturing, said:“The surge in imports and the drop in exports tells me three things: the overly strong dollar is going to be a major drag on growth in 2015, the proposed Trans-Pacific Partnership must include binding currency manipulation deterrents, and the President isn’t keeping his promise to get tough on China.

This trade deficit spells trouble for the Obama administration’s trade agenda, and it shows just how far we have to go to really spur re-shoring and secure more good-paying jobs for the American people.”

Meanwhile, factory orders in the USA fell in December for the fifth month in a row. US Commerce Department figures showed a month-on-month drop of 3.4% to $471.5 billion.

Analysts said that the decline in recent months has been felt across most sectors and is being blamed on a general downturn in the global economy, low oil prices and the rising dollar increasing the prices of US exports.