Financial and Economic News and Comments

US & Canada
The US trade deficit widened more than expected to $32.0 billion in July from a revised 27.5 billion in June, data from the Commerce Department showed. Exports increased 2.2% m/m to $127.6 billion in July, led by autos/parts. Imports, outpacing exports, rose a record 4.7% m/m to $159.6 billion, also driven by autos/parts, with additional large contributions from crude oil and pharmaceuticals. Exports fell 22.4% y/y and imports dropped 30.4% y/y; consequently, the monthly trade deficit was $32.9 billion smaller than last year.


US initial jobless claims fell 26,000 to a lower-than-expected 550,000 in the week ending September 5, the lowest level since July, from the previous week’s upwardly revised 576,000, figures from the Labor Department showed. The 4-week moving average declined 2,750 to 570,000. Continuing claims in the week ending August 29 dropped 159,000 to 6,088,000 from the preceding week’s upwardly revised 6,247,000. The 4-week moving average of those continuing claims decreased 37,750 to 6,182,500. The insured unemployment rate for the week ending August 29 slid to 4.6% from the prior week’s 4.7%. In short, the declines in both initial jobless and continuing claims signal the end of the recession (yellow areas), as shown in the chart below.