NEW YORK -- Consumer sentiment fell in early November amid a grim outlook for future job prospects, although separate data showing rising imports in September raised some hopes of renewed U.S. economic growth.
The Reuters/University of Michigan Surveys of Consumers said its preliminary index of sentiment for November fell to 66.0, the lowest level since August, from 70.6 in October. This was well below economists' median expectation of a reading of 71.0, according to a Reuters poll.
"Importantly, the declshortfall to grow modestly in September to around $31.65 billion.
Both U.S. exports and imports had their best month since December 2008. But in a sign of renewed U.S. economic growth, imports grew 5.8% in September, the biggest monthly gain since March 1993, while exports rose 2.9%.
Some analysts had expected more of an export boost because the drop in the value of the U.S. dollar against other major currencies makes American goods more competitive overseas.
But "the overall upturn in U.S. demand is trumping the fall of the dollar," said Craig Peckham, an equity trading strategist with Jefferies and Company in New York.
Imports of industrial supplies and materials showed the biggest gain in September, suggesting that U.S. manufacturers are ramping up for production.
The average price for imported oil leapt to $68.17 per barrel and imports from the Organization of Petroleum Export Countries increased to $11.9 billion in September, both the highest since November 2008.
Another report showed U.S. import prices rose for the third straight month in October, pushed up by a jump in the cost of fuel imports and the depreciating dollar.
Import prices advanced 0.7% after a revised 0.2% increase in September, the Labor Department said.
The weak U.S. dollar is helping to lift U.S. exports, but at the same time, analysts cite it as a factor pushing up the price of oil and other commodities.
The U.S. dollar briefly edged higher against the euro after the November consumer sentiment data dented risk appetite and boosted safe-haven demand for the greenback. U.S. stocks pared gains to trade slightly higher.
The closely watched U.S. trade deficit with China widened 9.2% to $22.1 billion as imports grew 8.3% to $27.9 billion, both also the highest since November 2008.
The overall U.S. trade deficit, including with China, has fallen significantly this year in response to the worst economic downturn in decade.
But the gap with China narrowed just 15.9% in the first nine months of the year, compared with much bigger declines for Canada (79.6%), the European Union (42.0%) and OPEC (71.8%).
That has reinforced ideas that China's currency remains undervalued against the dollar, giving Chinese companies an unfair trade advantage.
President Barack Obama is expected to raise concerns about China's exchange rate regime when he meets with Chinese leaders next week in Beijing. On Friday he was in Japan for talks before heading to Singapore for this weekend's annual summit meeting with leaders of the Asia Pacific Economic Cooperation forum.
