US exports sank 2.3% in November, driving the US trade deficit to all-time high of $60.3 billion, according to the latest Commerce Department estimates.
While exports fell to a five-month low of $95.6 billion, imports rose 1.3% to a record $155.8 billion as the bill for imported oil rose by 17.7%, or more than $2 billion, to a record $14.2 billion. The figures are adjusted for seasonal factors, but not price changes.
The trade gap increased 7.7% from October's revised $56 billion and 50.8% from November 2003's $40 billion. The euro soared by more than 1.5 cents after the news, to stand at just under $1.328 in late European trading.
Wall Street economists had expected the trade deficit on goods and services to shrink to about $53.3 billion. The gap widened despite a weakening dollar, which should make US goods and services cheaper both at home and abroad.
Today's report is likely to put more pressure on the greenback and renew calls for Washington to do something about energy independence and the trade imbalance with China.
The decline in November exports was led by a $1.4 billion drop in capital goods, including $325m in aircraft and aircraft engines. Exports of industrial materials, mainly energy, fell by $800m. Exports of cars, consumer goods and food also declined.
