US exports rise signalling firmer growth
The US economy is sluggish, but it is still moving along.
That was the message from 2 economic reports that pointed to a weak labor market, but also a better performance on trade that should boost Q-3 GDP.
The number of Americans filing new claims for jobless benefits rose unexpectedly last week, further evidence of an anemic employment picture just hours before President Barack Obama unveils a plan on job creation in a major address to Congress.
Still, a considerably narrower trade deficit for July offers hope for economic growth in Q-3 following a sluggish 1-H of this year.
Applications for unemployment benefits rose to 414,000 in the week ending September 3 from an upwardly revised 412,000 the prior week, the Labor Department said on Thursday. Wall Street analysts had been looking for a dip to 405,000.
“Jobless claims numbers have been stabilizing in recent weeks. We’re probably seeing an economy that’s just growing slowly,” said Gary Thayer, chief macro strategist at Wells Fargo Advisors in St. Louis.
US stocks were little changed as investors looked ahead to Obama’s address while Treasury debt was slightly higher and the USD was up.
Paul A. Ebeling, Jnr.