The U.S. trade deficit rose to $44.2 billion in August from a revised $42.5-billion U.S. gap in July that was previously reported as $42.0 billion U.S. The increase in the trade deficit in August reflected a 1.0% drop in exports that more-than-offset a modest 0.1% dip in imports. The drop in exports was relatively broadly based with exports of foods (-8.3%), industrial supplies (-3.0%) and consumer goods ex-autos (-2.8%) all posting sizable declines in the month. Imports of industrial supplies (2.7%) and 'other merchandise' (2.9%) rose; however, these gains were offset by lower imports of consumer goods ex-autos (-2.8%), autos (-3.0%) and capital goods (-1.1%).
Excluding the impact of prices, Washington reported that the real trade deficit (in chained 2005 dollars, census basis) widened to $48.4 billion U.S. from an upwardly revised $47.0 billion U.S. (was $46.5 billion) in July. This reflected a 2.6% drop in exports and a 0.9% decline in imports. Prices for imported oil products averaged $94.36 U.S. in August, up slightly from $93.83 U.S. in July.
In separate report this morning, U.S. initial unemployment insurance claims plunged 30,000 to 339,000 in the week ending October 6 from an upwardly revised 369,000 level (was 367,000) the previous week. The drop in the latest week left the level of claims well below market expectations for a 370,000 level and marked the lowest weekly reading since February 2008. The four-week moving average of initial claims fell to 364,000 from 375,000. A U.S. Labor department spokesperson reportedly said that a large decline in one state accounted for most of the weekly decline.
