The U.S. trade deficit rose by 6.5 percent in 2006, hitting a new record of 763.6 billion dollars, the Commerce Department reported Tuesday.

The trade deficit, the gap between what America sells abroad and what it imports, marked the fifth consecutive annual record. The previous record of 716.7 billion dollars was set in 2005.

Last year's 6.5 percent rise in trade deficit followed bigger ones of 17.3 percent in 2005 and 23.5 percent in 2004.

Data showed that U.S. deficit in goods trade stood at 836.1 billion dollars last year while its services recorded a surplus of 72.5 billion dollars.

Total exports of goods and services increased by 12.8 percent last year to an all-time high of 1.44 trillion dollars. Imports rose by 10.4 percent to 2.20 trillion dollars, also setting a new record.

The latest trade deficit reflected a surge in America's foreign oil bill. U.S. oil imports rose to a record high of 302.5 billion dollars in 2006 as the average price of a barrel of crude oil climbed to 58 dollars.

For December, the U.S. trade deficit rose by 5.3 percent to 61.2 billion dollars.