|
 While other data on Thursday showed an increase in the number of
Americans filing new claims for unemployment benefits, the trend in
jobless claims remained consistent with a strengthening labor
market.
The Commerce Department said the trade gap narrowed 7.4 percent to
$41.9 billion, the smallest since February. June's trade deficit was
revised to $45.2 billion from the previously reported $43.8 billion.
When adjusted for inflation, the deficit fell to $56.2 billion in
July from $59.0 billion in the prior month.
The smaller deficit implied a modest contribution to gross domestic
product from trade early in the third quarter. Trade contributed 0.3
percentage point to the economy's 3.7 percent annualized growth rate
in the second quarter.
Data ranging from consumer spending to employment and housing have
suggested the economy retained much of its momentum from the second
quarter and was on solid footing when global financial markets were
rocked by turbulence triggered by worries over China's economy.
U.S. stock index futures extended gains slightly after the data,
while the dollar fell further against a basket of currencies. Prices
of U.S. government debt rose.
In a separate report, the Labor Department said initial claims for
state unemployment benefits increased 12,000 to a seasonally
adjusted 282,000 for the week ended Aug. 29.
The claims data has no bearing on Friday's closely watched
employment report for August as it fell outside the survey period.
According to a Reuters survey of economists, nonfarm payrolls likely
increased by 220,000 last month after rising 215,000 in July.
But job gains could come in below expectations as the first reading
of August payrolls has tended to be weaker in the last several years
before being revised higher.
The August employment report will be released less than two weeks
before the Federal Reserve's Sept. 16-17 policy-setting meeting.
There is speculation the U.S. central bank could raise interest
rates at that meeting.
The four-week moving average of claims, considered a better measure
of labor market trends as it irons out week-to-week volatility, rose
3,250 to 275,500 last week.
[to top of second column] |
It was the 23rd straight week that the four-week average remained
below the 300,000 threshold, which is usually associated with a
strengthening labor market.
DOLLAR DRAG
In July, exports increased 0.4 percent to $188.5 billion. While that
was the first increase since April, exports remain constrained by a
strong dollar. The dollar has gained 16.8 percent against the
currencies of the United States' main trading partners since June
2014.
There were increases in exports of food, industrial supplies and
materials, and capital goods in July. Automobile exports also rose.
Imports fell 1.1 percent to $230.4 billion. However, automobile
imports were the highest on record. Imports of consumer goods fell
in July.
Exports to China fell 1.9 percent and imports from that country
dipped 0.2 percent. That left the politically sensitive U.S.-China
trade deficit at $31.6 billion, up 0.4 percent from June. The trade
deficit with China will be closely watched in the coming months
after that country devalued its currency in August.
Exports to Canada fell 8.3 percent in July and could come under more
pressure after the Canadian economy slipped into recession in the
second quarter. Exports to recession-hit Brazil were the lowest
since February 2010.
Exports to the European Union fell 5.3 percent.
(Reporting by Lucia Mutikani; Editing by Paul Simao)
[© 2015 Thomson Reuters. All rights
reserved.] Copyright 2015 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
