Plus: U.S. Trade Gap Narrows Slightly and Initial Jobless Claims Inch Downward.

U.S. Trade Gap Narrows Slightly
The United States trade deficit in August shrank to the lowest level since April, $45.61 billion, down slightly from July’s revised total of $45.63 billion, according to the U.S. Department of Commerce on Thursday. The contraction in the trade gap was largely due to imports falling faster than exports. Exports dropped to $177.7 billion in August, while imports fell to $223.3 billion.

The goods deficit for the month grew to $61.4 billion, a $0.1 billion increase over July, while the services surplus increased by $0.2 billion to total $15.8 billion. Goods exports fell $0.1 billion to $126.7 billion, led by declines in automotive vehicles, parts and engines, as well as capital goods. Monthly goods imports remained relatively unchanged at $188.1 billion, with the largest gains in industrial supplies and materials and the steepest declines in consumer goods. Services exports remained at $50.9 billion and services imports fell to $35.1 billion.

“Trade is still expected to provide a small boost to real gross domestic product growth in the third quarter because the average deficit in July and August is still smaller than the average in the second quarter,” MarketWatch reports. “Economists expect third-quarter growth in the neighborhood of 2.5 percent. This would be above the tepid 1.3 percent growth rate in the second quarter.”

Despite the contraction in the overall trade gap, the trade deficit with China widened in August, climbing to $29 billion, a record high for any single month. Imports from China surged to $37.4 billion, the highest on record. The data comes at a difficult time, as policymakers are currently considering major trade reforms with China.

“On Tuesday, the Senate approved legislation that would allow the administration to impose penalty tariffs on Chinese products sold in the U.S. if China does not do more to allow its currency to rise in value against the dollar,” the Associated Press reports. “Critics charge that China is keeping its currency artificially low against the dollar to make Chinese goods cheaper in the United States and American products more expensive in China.”

Jobless Claims Inch Downward
New initial jobless claims decreased in the latest week reported, following a steady series of drops over the previous three weeks. According to the U.S. Department of Labor, seasonally adjusted unemployment claims for the week ending October 8 fell by 1,000 to a total of 404,000, down from the previous week’s revised total of 405,000. The four-week moving average dropped by 7,000, reaching the lowest level since mid-August.

The drop in jobless claims came as a surprise, as economists polled by MarketWatch had forecast the total to increase to 406,000 for the week. Claims have fluctuated widely in recent months, hitting 432,000 in early September and hovering above the 400,000 level since April.

“The latest monthly job report from the government, issued [October 7], showed that hiring was stronger than expected in September. Employers added 103,000 jobs in the month,” CNN Money notes. “Nevertheless, economists say the economy needs to add at least 150,000 jobs a month just to keep pace with population growth.”

Many are hoping that a renewed focus on strengthening trade and U.S. competitiveness will boost domestic labor prospects. The White House has set a goal of doubling U.S. exports to around $3 trillion by 2014, and recently signed three free trade agreements with South Korea, Colombia and Panama.

“Boosting exports would help to address the stubbornly weak labor market, where the unemployment rate has held at 9.1 percent for three straight months,” Reuters explains. “Economists are cautiously optimistic job creation will gather momentum, and pointed to the moderation in layoffs evidenced by the drop in claims for state jobless benefits.”

Fewer Workers Angling for the Corner Office
Few workers today are angling for their boss’s job, according to new survey findings from OfficeTeam.

Based on a survey of 431 office workers ages 18 or older, the staffing services firm found that more than three-quarters (76 percent) of respondents are not interested in having their manager’s position and nearly two-thirds (65 percent) believe they couldn’t do a better job than their boss. The survey also revealed that more workers between the ages of 18 and 34 want their manager’s position (35 percent) than those in other age groups.

“Many aspects of management involve making difficult, sometimes unpopular decisions, and not everyone is comfortable in this role,” Robert Hosking, executive director of OfficeTeam, said in a statement.

Based on OfficeTeam’s findings, the seven traits potential leaders possess are: 1) integrity, 2) sound judgment, 3) diplomacy, 4) adaptability, 5) strong communication, 6) good listening skills and 7) influence.

“Being a strong individual contributor does not necessarily equate to being an effective leader,” according to Hosking. “The most successful bosses excel at motivating others to achieve great results.”