WASHINGTON, Jan 13 (Reuters) - The U.S. trade deficit shrank 28.7 percent in November, the biggest contraction in 12 years, as weak consumer demand and plummeting oil prices caused a record drop in imports, a U.S. Commerce Department report showed on Tuesday.
The $40.4 billion trade gap in November was the lowest in five years and much lower than expected. Wall Street analyst had expected the trade gap to narrow to around $51.3 billion, from a downwardly revised $56.7 billion in October.
U.S. imports in November fell a record 12 percent to $183.2 billion, as the global financial crisis scared businesses and consumers into cutting their spending.
Imports of both capital and consumers goods were the lowest since mid-2006, while auto and auto part imports fell to levels not seen since August 2003. Imports from China fell by a record $5.7 billion to $28.3 billion.
The average price for imported oil plunged a record $25.30 per barrel in November as recession fears deepened. Along with the drop in prices to $66.72, the average daily volume of U.S. oil imports fell 1.7 million barrels.
U.S. exports, in sign of global economic woes, fell 5.8 percent in November to $142.8 billion. Total U.S. goods exports were the lowest since June 2007, while auto and auto part exports were the lowest since October 2006. (Reporting by Doug Palmer, Editing by Neil Stempleman)