MNI DATA IMPACT: US May Trade Gap Widened To -$55.5b>

--Initial Jobless Claims Fell 8k To 221k in June 29 Week

By Kevin Kastner and Brooke Migdon

     WASHINGTON (MNI) - The international trade gap widened to $55.5 

billion in May from a revised $51.2 billion gap in April, larger 

expectations, based on data released by the Commerce Department 

Wednesday. 

     The Bloomberg survey had expected a $54.0 billion gap in May, while 

the MNI survey expected a $53.6 billion deficit. 

     Also released on Thursday, the level of initial jobless claims fell 

by 8,000 to 221,000 in the June 29 week, below the 223,000 level 

expected. The four-week average held roughly steady. 

     Here are some of the key takeaways from the data released Thursday:

     - The unadjusted gap with China widened to $30.2 billion in May 

from $26.9 billion in April. There was a wider gap after seasonal 

adjustment as well. For the other major trading partners, there were 

larger gaps with Canada and Mexico, but smaller gaps with the EU and 

Japan. 

     - The Census goods gap was revised wider to $75.0b from the advance 

reading of $74.6b. 

     - Imports increased on industrial goods, capital goods, autos, and 

consumer goods. Exports rose on capital goods, autos, and consumer 

goods. 

     - The four-week moving average for claims fell by 8,000 to 221,000 

in the June 29 week and would be expected to hold roughly steady next 

week as a 222,000 level in the June week rolls out. 

     - Seasonal adjustment factors had expected unadjusted claims to 

rise by 5,262 to start the summer retooling season. Unadjusted claims 

actually fell by 2,974 to 222,844, below the 231,539 level in the 

comparable week a year ago. 

     - Continuing claims fell by 8,000 to 1.686 million in the June 22 

week. The four-week average fell by 1,750 to 1.687 million. The rate of 

insured unemployment was 1.2%, unchanged from last week and the year-ago 

rate. 

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

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