WASHINGTON (AP) — The United States trade deficit rose to the highest level in 16 months as exports fell for the second time in three months, a potentially worrisome sign that Europe’s debt troubles are beginning to crimp American manufacturers. þþThe Commerce Department said Thursday that the trade deficit widened to $40.3 billion in April, up by 0.6 percent from March. American exports dropped 0.6 percent while imports declined by 0.4 percent. þþManufacturing has been a standout performer as the United States recovers from the worst recession in decades. But the concern is that Europe’s debt crisis will slow growth in that part of the world and dampen demand in a key American export market. þþStill, the latest economic reports offered some encouraging news. The tally of laid-off workers continuing to claim jobless benefits fell by the largest amount in almost a year. þþAt the same time, new claims for unemployment insurance dipped slightly for a third week. þþThe Labor Department said Thursday that the total unemployment benefit rolls fell by 255,000 to a seasonally adjusted 4.5 million. It was the lowest total since December 2008. Analysts polled by Thomson Financial expected a much smaller drop. þþThe number of first-time claims fell by 3,000 to a seasonally adjusted 456,000. New claims have been stuck at 450,000 since the beginning of the year. þþ
Source: NY Times
