Plus: U.S. Trade Deficit Widens, Jobless Claims Continue Climb and Manufacturers Call for Export-Control Overhaul.

U.S. Trade Deficit Widens in February
The nation’s trade deficit widened by 7.4 percent to $39.7 billion in February, from a revised $37 billion the prior month, according to the U.S. Department of Commerce last week.

On Wednesday, the Commerce Department reported that imports climbed faster than exports in February, rising 1.7 percent to outpace an exports gain that pushed sales abroad to the highest level since October 2008.

“Much of the growth in imports came from consumer goods, like televisions and pharmaceutical products, as the jobs market improved slightly and Americans began to spend more,” the New York Times reports. “Businesses imported goods to restock inventories and replace aging equipment. Industrial supplies and capital goods, like machinery and tools, bolstered much of the growth.”

Citing Labor Department figures, Bloomberg News notes, “Prices of goods imported into the U.S. rose less than anticipated in March, indicating few signs of building inflation pressures from abroad, another report showed. The 0.7 percent increase in the import-price index followed a revised 0.2 percent drop in February… . Prices excluding petroleum fell 0.2 percent last month, the first decline since July 2009.”

The trade deficit with Japan widened 28.3 percent to $4.3 billion in February, while the deficit with China rose 9.8 percent to $16.5 billion.

Last year, the trade deficit fell to $378.6 billion, the smallest gap in eight years, reflecting the severe U.S. recession that depressed demand for imports.

Retail Sales Climb in March
U.S. retail sales rose for the third consecutive month in March, indicating an improvement in consumer confidence and a gradual build-up in demand. According to the U.S. Department of Commerce on Wednesday, national retail and food services sales rose to $363.2 billion (seasonally adjusted), a 1.6 percent increase over February and 7.6 percent above March 2009.

The latest gains were in keeping with a broader upward trend in retail sales and consumer spending rates. Total sales for the period between January and March of this year were up 5.5 percent over the same period in 2009. Much of last month’s increases were due to surging automotive sales, which climbed 6.7 percent. Total sales for motor vehicles and parts dealers were up 14.1 percent over March 2009.

“[B]usinesses increased their stockpiles for the second straight month in February. That’s a positive sign that they expect further sales gains,” the Associated Press reports. “Factories, retailers and wholesalers had slashed inventories during the recession as sales plummeted. Sustained gains in sales may persuade businesses to rebuild their stockpiles, triggering increased factory production and supporting the economic recovery.”

Although consumer spending may provide a boost to the general economy, concerns remain over the long-term financial effects of scaling back incentive programs, as well as unstable employment.

“Increasingly, economists are saying that consumer spending, which accounts for 70 percent of the economy, may be more robust this year than previously thought,” the New York Times explains. “But they say that the recent burst of enthusiasm could fade as government stimulus spending wanes and if the labor market remains weak.”

Jobless Claims Up for Second Consecutive Week
New initial jobless claims increased in the latest week reported, according to the U.S. Department of Labor on Thursday. Seasonally adjusted unemployment claims for the week ending April 10 rose to 484,000, a 24,000 increase from the previous week’s 460,000. The latest four-week moving average was 457,750, a 7,500 increase over the previous week’s average.

The latest figures marked the second consecutive week of rising jobless claims, raising concerns about the future of the labor market and weakening the prospects for an employment turnaround in the near future.

According to the AP, the latest weekly rise in jobless claims “underscored the bumpiness of the economic rebound: Consumers are spending more. Factories are making more. But layoffs have not tapered off as fast as expected.”

Although increasing benefits claims may cast more uncertainty on the unemployment market, the U.S. added 162,000 new jobs in March and new jobless claims remain below the March 2009 peak of over 650,000. Some experts also claim that one-time occurrences may have disproportionately skewed the results.

“Economists suggest the spike in claims could be related to the Easter holiday,” the Washington Post’s Economy Watch blog says. “Each week, it seems, there’s some sort of anomaly that affects the new jobless claims — the big February snows, the March snapback from the big February snows, the Easter holiday — so it’s hard to get a good handle on the real jobless picture in the U.S.”

Manufacturers Call for Overhaul of U.S. Export Control System
Earlier this year, the National Association of Manufacturers (NAM) submitted a list of short-term goals to the Obama administration that focused on improving U.S. security and global competitiveness. Last week, NAM called for an overhaul of the nation’s export control system.

On Tuesday, NAM put forth seven comprehensive recommendations aimed at helping establish the framework for “an export control regime” that protects national security, supports the high-tech industrial base and enables manufacturers to compete better in the global marketplace.

Among the latest recommendations: establishing a permanent inter-agency team to review and assess overall policy objectives; creating one central location for technical experts to develop a unified control list; and improving multilateral engagement.

“Our export control system has not been significantly changed in over 30 years and is badly out of date,” Frank Vargo, NAM’s vice president for international economic affairs, said in a statement. “Updating the system will enhance our security by allowing the government to focus its enforcement resources on the most critical goods and technologies. At the same time, it will enhance U.S. companies’ competitiveness by providing a clearer and more efficient licensing system.”