The gap between US exports and imports has widened to more than $60bn (£31.7bn), an all-time record. Figures from the Commerce Department for November showed exports down 2.3% to $95.6bn, while imports grew 1.3% to $155.8bn on rising consumer demand. Part of the expanding deficit came from high prices for oil imports. But the numbers suggested the sliding dollar - which makes exports less expensive - has had little impact, and could indicate slowing economic growth. The trade deficit - far bigger than the $54bn widely expected on Wall Street - prompted a rapid response from the currency markets. By 1650 GMT, the dollar was trading against the euro at $1.3280, almost a cent and a half weaker than before the announcement. Against the pound, the dollar was down about 0.7% at $1,8923. "The dollar's fall has been sudden, violent and appropriate given this number," said Brian Taylor of Wells Fargo in Minneapolis. "Recent exchange rate movements certainly haven't had any impact yet." Treasury Secretary John Snow put a brave face on the news, saying it was a sign of strong economic expansion. "The economy is growing at such a fast rate that it is generating lots of disposable income... some of which is used to buy goods from our trading partners." Although the White House officially still backs the US's traditional "strong dollar" policy, it has tacitly indicated that it would be happy if the slide continued. The dollar has fallen by 50% against the euro - as well as by 30% against the yen - in the past three years. The main catalyst, most economists accept, is the large budget deficit on the one hand, and the current account deficit - the difference between the flow of money in and out of the US - on the other. The trade deficit is a large part of the latter. In November, the fall in exports was largely due to a decline in sales of industrial supplies and materials such as chemicals, as well as of cars, consumer goods and food. One small bright spot for US policy-makers was a slight decline in the deficit with China, often blamed for job losses and other economic woes. Although China's overall trade surplus is expanding, according to Chinese government figures, the Commerce Department revealed the US's deficit with China was $19.6bn in November, down from $19.7bn the month before. But the deficit with Japan was at its worst in more than four years.
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