Jobless benefits claims were higher, the trade deficit was lower and wholesale inflation was flat, the United States government said in three economic reports on Thursday.þþNew claims for unemployment benefits unexpectedly rose last week, the Labor Department said, hitting their highest level since January, a development that could raise fears the labor market recovery was stalling after job creation slowed in March.þþInitial claims for state unemployment benefits increased 13,000 to a seasonally adjusted 380,000. Economists polled by Reuters had forecast claims falling to 355,000. The prior week's figure was revised up to 367,000 from the previously reported 357,000.þþThe four-week moving average for new claims, considered a better measure of labor market trends, rose 4,250 to 368,500.þþThe claims data comes in the wake of Friday's disappointing employment report for March, which showed the economy created 120,000 new jobs, the smallest amount since October.þþDespite the rise in claims last week, both first-time applications for unemployment aid and the four-week average held below the 400,000 mark, implying job gains above March's tally.þþA total of 6.95 million people were claiming unemployment benefits in the week ended March 24 under all programs, down 97,833 from the prior week.þþSeparately, the Commerce Department said the American trade deficit narrowed in February as exports hit a record high, imports from China and other key suppliers declined and oil import volume fell to the lowest in 15 years.þþThe monthly trade gap unexpectedly shrank 12.4 percent to $46.0 billion, the biggest month-to-month decline since May 2009, the government said. Analysts surveyed before the report had expected the deficit to narrow only slightly from January's revised estimate of $52.5 billion.þþAmerican exports edged slightly higher to a record $181.2 billion, led by record exports of services and capital goods, such as civilian aircraft and industrial machines.þþExports to Canada, the biggest trade partner of the United States, grew 7.2 percent and also rose to the 27-nation European Union, China, Brazil and newly industrialized countries. Exports to Britain hit a record $5.3 billion.þþImports dropped 2.7 percent to $227.2 billion, the biggest monthly drop in three years. Imports from China slipped 18.2 percent and also fell from other major suppliers, such as Canada and the European Union.þþThe closely watched deficit with China shrank 25.6 percent to $19.4 billion, the lowest in nearly a year.þþMeanwhile, producer prices were unexpectedly flat in March as a drop in gasoline costs offset rising food prices, according to a Labor Department report that also showed moderate underlying inflation pressures.þþThe department said its seasonally adjusted producer price index was unchanged last month after advancing 0.4 percent in February. Economists polled by Reuters had expected prices at farms, factories and refineries to rise 0.3 percent.þþWholesale prices excluding volatile food and energy costs rose 0.3 percent after February's 0.2 percent gain. That was a touch above economists' expectations for a 0.2 percent advance and marked the fifth successive month of increases in core wholesale inflation.þþOverall producer prices were held back by a 2 percent fall in gasoline, the largest decline since October, after a 4.3 percent jump in February. That offset a 0.2 percent rise in food prices, which halted three straight months of declines.þþHowever, when seasonal factors are excluded, gasoline prices rose 7.5 percent.þþIn the 12 months to March, wholesale prices increased 2.8 percent, the smallest increase since June 2010, after advancing 3.3 percent in February. In the 12 months to March, core producer prices increased 2.9 percent after rising 3.0 percent the previous month.þ
Source: NY Times
