hilbert
Member
Our latest trade deficit shows its the lowest since last Fall, a great sign!
» Lowest trade deficit since fall a good sign
» Lowest trade deficit since fall a good sign
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While other data on Thursday showed an increase in the number of Americans filing new applications for unemployment benefits, the trend in jobless claims remained consistent with a strengthening labor market. Activity in the vast services sector also hovered at a 10-year high in August. "There is little evidence that the abrupt deterioration in financial market conditions and the heightened concerns about the global economy have begun to affect the U.S. economy," said Ryan Sweet, a senior economist at Moody’s Analytics in West Chester, Pennsylvania.
The Commerce Department said the trade gap narrowed 7.4 percent to $41.9 billion, the smallest since February. When adjusted for inflation, the deficit fell to $56.2 billion 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 added 0.3 percentage point to the economy's 3.7 percent annualized growth rate in the second quarter.
Semi trucks line up to pick up shipping containers at the Port of Long Beach
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. Stocks on Wall Street were trading higher after the data. Investor sentiment also was boosted after the European Central Bank indicated it could prolong its monetary stimulus program. The dollar rose against a basket of currencies, while prices for longer-dated U.S. Treasuries fell.
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.
EYES ON FED