U.S. Trade Gap Shrinks on Strong Exports

Strong exports narrowed the trade deficit in the second quarter, the federal government said, in another sign of solid economic growth. The current account, the broadest measure of the nation’s trade performance, fell 2.4% to $39.03 billion in the quarter from a revised $39.97 billion in the first quarter, the Commerce Department said. The account includes trade not only in goods and services, but also measures investment flows between countries, government grants and other payments sent overseas by private citizens. The improved trade balance reflects robust economic growth in the second quarter--imports rose from first-quarter levels too, but not as quickly as exports--and strong buying of U.S. securities by foreigners. In a separate report, the Labor Department said new applications for jobless benefits fell 14,000 last week to 310,000 as steady growth continued to generate brisk demand for labor. The more closely watched four-week moving average, which irons out weekly variations, fell 1,750 from the previous week to 324,000 in the week ended Saturday.