US jobless claims decline

Washington  The number of Americans submitting new applications for jobless benefits edged down last week, easing concerns the labour market was deteriorating after April's weak employment growth.

While the claims data indicated the economy remained on a moderate growth path, a report from the Commerce Department showing a widening in the trade deficit in March suggested economic growth was much slower in the first quarter than initially believed.

New claims for state unemployment benefits slipped 1,000 to a seasonally adjusted 367,000, the Labour Department said yesterday. The prior week's figure was revised up to 368,000 from the previously reported 365,000.

Separately, the trade gap grew 14.1 per cent to $51.8 billion (Dh190.5 billion), the biggest jump in nearly a year, even though exports also hit a record high. Economists had expected the trade gap to widen to about $50 billion.