The U.S. trade deficit unexpectedly narrowed in September on record exports and jobless claims fell to a seven-month low, indicating the world’s largest economy may be poised to strengthen.
The trade shortfall shrank 4 percent to $43.1 billion from a revised $44.9 billion in August that was smaller than initially reported, the Commerce Department said in Washington. First-time applications for unemployment benefits declined by 10,000 to 390,000 last week, the Labor Department said.
The smaller trade bill may contribute more to the rebound in third-quarter growth than first estimated as overseas demand encourages U.S. factories to boost production. A sustained decline in applications for unemployment benefits may be the first step to a pickup in hiring that’s needed to spur household purchases, the biggest part of the economy.
