US trade deficit narrows sharply in November

America's shortfall in trade with the rest of the world narrowed sharply in November, on the heels of a large drop in purchases from overseas.

The US trade deficit on goods and services with the rest of the world declined at a pace of 11.5% month-on-month to reach $49.3bn, according to the Department of Commerce.

Economists had forecast only a dip in the overall deficit to $54.0bn.

Total imports were especially weak, falling by 2.9% over the month to $259.2bn, while exports slipped by 0.6% to $209.9bn.

Purchases of goods from overseas weakened the most, declining by $7.9bn to $211.9bn, led by a $2.3bn fall in imports of cell phones and other household goods, while those of industrial supplies and materials - which include crude and fuel oil - decreased by $3.4bn.

On the export side of the equation, sales of civilian aircraft were a bright spot, increasing by $1.0bn.

Overall, the goods deficit shrank by $6.7bn to $71.6bn while the services surplus was $0.3bn smaller at $22.3bn.

Nevertheless, year-to-date the total trade deficit was 10.4% or $51.9bn wider than over the same period of 2017.