Economic Indicators September 9, 2010

1. International Trade

• The overall U.S. trade deficit narrowed to $42.8 billion in July from $49.8 billion in June, much smaller than the consensus forecast for a $46.8 billion deficit.
• Exports rebounded 1.8 percent, following a 1.3 percent decline in June. Overall imports declined 2.1 percent after increasing 3.1 percent the prior month. Nonoil imports fell 3.0 percent, following a 4.6 percent jump in June.
• the boost in goods exports was led by a $2.3 billion jump in capital goods excluding autos. A large part of this--$1.4 billion-was civilian aircraft
• The drop in imports was broad based though following a large overall increase in June.
• Improvement in trade deficit adds a little lift to third quarter GDP growth. Manufacturers certainly will be happy about the resumption of export growth.

2.  Initial Jobless Claims

• As a sign of improvement for the labor market, initial jobless claims fell substantially in the September 4 week.
• Claims came in at 451,000 vs. 478,000 in the prior week (revised from 472,000). The 451,000 level is the lowest since July and the second lowest since May.
• The Labor Department told Market News International that nine states had to be estimated due to delays tied to the holiday shortened week, but the government stressed that data since received confirm the improvement.
• The four-week average fell nearly 10,000 to 477,750 and is only slightly higher than a month-ago.
• Continuing claims show 4.478 million in data for the August 28 week with the four-week average at 4.488 million, the latter down mildly from the month-ago reading. The unemployment rate for insured workers is unchanged at 3.5 percent.