WASHINGTON: The U.S. trade deficit unexpectedly narrowed in April as imports of goods dropped to a 15-month low, which could support the economy as it slows after a temporary boost from exports and an accumulation of inventories early this year.
While Washington has secured a trade pact with Mexico and Canada, there are fears it could be scuttled by Trump's announcement last week that he would impose a tariff on all goods from Mexico in a bid to stem the tide of illegal immigration across the U.S.-Mexican border. The tariff would start at 5per cent on June 10.
China, the world's biggest buyer of soybeans, has previously targeted the crop in the trade war, only relenting when trade negotiations appeared to be progressing. The claims data has no bearing on May's employment report, which is scheduled for release on Friday. According to a Reuters survey of economists, nonfarm payrolls likely increased by 185,000 jobs in May after surging by 263,000 in April.
Data for the fourth quarter was revised to show unit labor costs falling at a 0.4per cent rate in the October-December period, rather than increasing at a 2.5per cent pace as previously reported.