The Department of Labor reported today that seasonally adjusted first-time unemployment claims dropped last week by a heartening 27,000, down to 451,000. Economists had expected the number to fall by only 2,000. The four-week moving average of new claims also fell, dropping 9,250 to 477,750.

The United States trade deficit also fell, decreasing by 14 percent. The narrower trade gap indicates a stronger export market for U.S. companies and should benefit the wider economy.

Overall unemployment remains stubbornly high, however, and in fact ticked up by .1% in August. The private sector added 67,000 jobs during August, but will need to add about 200,000 jobs per month in order to drive down unemployment consistently.