US trade deficit narrows sharply as sales of aircraft and soybeans surge
Washington — The US trade deficit narrowed sharply in March as exports increased to a record high amid a surge in deliveries of commercial aircraft and soybeans, bolstering the economy’s outlook heading into the second quarter. While other data on Thursday showed a modest increase in new applications for jobless benefits last week, the number of Americans receiving unemployment aid fell to its lowest level since 1973, pointing to tightening labour market conditions. Wage growth is also rising, with hourly compensation accelerating in the first quarter, more evidence that inflation pressures are building. "The good news is that we are exporting more, but with the labour markets incredibly tight, labour costs are accelerating as well," said Joel Naroff, chief economist at Naroff Economic Advisors in Holland, Pennsylvania. "The rise in labour costs will undoubtedly factor into policy makers’ thinking when they meet again in June." The Federal Reserve on Wednesday left interest rates un...
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