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US November trade defict hits five-month high of $47.8 billion

The Commerce Department says the deficit increased 10.4 per cent to $47.8 billion, the highest level since June.

Ratan Tata and Cyrus Mistry meet Gujarat CM Narendra Modi
Ratan Tata and Cyrus Mistry meet Gujarat CM Narendra Modi

The US trade deficit widened in November for the first time in five months. Exports fell for a second straight month while imports rose to an all-time high, driven by rising demand for oil and foreign-made cars.

 The Commerce Department says the deficit increased 10.4 per cent to $47.8 billion, the highest level since June. 

Exports, which had hit a record high in September, dropped 0.9 per cent in November to $177.8 billion. Fewer shipments of autos and capital goods, such as aircraft and machinery, were the key reason. 

Imports rose 1.3 per cent to a record $225.6 billion. 

A decline in exports weakens U.S. growth, and they could drop further. Europe's debt problems will likely slow demand for American-made goods. Europe purchases one-fifth of U.S. exports.