NEW YORK, Nov 27 (Reuters) - The U.S. commercial paper market contracted in the latest week, Federal Reserve data showed on Friday, adding to hints that a three-month expansion of the market might be stalling amid a feeble economic recovery.

It was the third weekly contraction in four weeks. For the week ended Wednesday Nov. 25, the size of the U.S. commercial paper market, a vital source of short-term funding for companies' daily operations, fell by $10.7 billion to $1.257 trillion outstanding.

(Reporting by John Parry; Editing by Chizu Nomiyama)

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