MNI DATA ANALYSIS: US February Trade Gap Widens To $57.6b>

--Census Goods Gap $75.9b Vs $76.5b Advance Estimate

--Initial Jobless Claims +24k To 242,000; Mar 24 Wk Rev Up +3k

--Continuing claims Rose -64k To 1.808m In March 31 week

By Sara Haire and Holly Stokes

     WASHINGTON (MNI) - The U.S. international trade gap widened to 

$57.6 billion in February, a wider gap than the $56.7 billion deficit 

expected and the largest since October 2008, data released by the 

Commerce Department Thursday morning showed. 

     The wider trade gap reflected an increase in exports, but a larger 

rise in imports. 

--CENSUS GAP NARROWER THAN ADVANCE

     The revised Census goods gap reported Thursday was narrower than 

the advance estimate of $76.5 billion, coming in at $75.9 billion. 

     The overall BOP goods gap widened slightly to $77.0 billion from 

$76.7 billion in January, while the services surplus shrunk modestly to 

$19.4 billion from $20.0 billion in January. 

     The chained goods gap narrowed modestly to $69.1 billion from $70.0 

billion in January.

     The petroleum gap widened mildly to $7.4 billion in February from 

$7.2 billion in January, with imports up slightly more than exports. The 

nonpetroleum gap barely widened to $68.5 billion from $68.3 billion. 

--IMPORTS AND EXPORTS RISE

     Imports of foods, feeds, and beverages, industrial supplies, and 

capital goods were the highest on record for the Census Basis, which 

propelled total February imports of goods to be the highest on record 

($212.5 billion).  

     Imports were up in the month, with increases seen in all major 

categories. There was a $1.8 billion increase in capital goods led by a 

$0.5 billion jump in civilian aircraft imports. 

     Industrial supply imports saw a $0.8 billion rise. The main 

contributor to the rise was crude oil, seeing a rise of $0.7 billion. 

     Exports rose on a $2.0 billion rise in industrial supplies, 

particularly on nonmonetary gold (+$0.6 billion), and a $0.9 billion 

increase in auto vehicles, parts, and engines exports. The only decline 

seen was in consumer goods (-$0.8 billion), driven by a drop in 

pharmaceutical preparations exports (-$0.6 billion). 

     The unadjusted bilateral trade gap with China narrowed to -$29.3 

billion in February from -$36.0 billion in January, but wider than the 

-$23.0 billion a year ago. There were also narrower gaps with Canada 

(-$0.4 billion), Japan (-$5.5 billion), and the EU (-$12.0 billion) 

while the gaps with Mexico widened (-$6.1 billion). 

--CLAIMS HIGHER THAN EXPECTED

     Also released on Thursday, initial jobless claims rose by 24,000 to 

242,000 in the March 31 week, well above the 225,000 level expected. 

     The four-week moving average rose by 3,000 to 228,250, despite the 

high 230,000 level in the March 3 week dropping out of the equation. The 

average could rise further next week if there is no change to the 

headline number as the 226,000 level in the March 10 week drops out. 

     Seasonal adjustment factors had expected a decrease of 7.4%, or 

14,372, in unadjusted claims in the week. Instead, unadjusted claims 

rose by 5,797 (+3.0%) to 200,909. The current week's level remains below 

the 208,347 level in the comparable week a year ago. 

     Continuing claims fell by 64,000 to 1.808 million in the March 24 

week, lower than the year ago levels.  The data still suggest that labor 

markets continue to be tight and workers are finding jobs relatively 

quickly. 

     The seasonally adjusted insured unemployment rate remained at 1.3% 

in the March 24 week. This is the fifth consecutive week staying at 

1.3%. The current week's rate is down from 1.5% in the same week a year 

earlier. 

     The unemployment rate among the insured labor force is well below 

that reported monthly by the Labor Department because claims are 

approved for the most part only for job losers, not the job leavers and 

labor force reentrants included in the monthly report. 

     ** MNI Washington Bureau: 202-371-2121 ** 

[TOPICS: MAUDS$,M$U$$$,MAUDR$]