Weekly initial jobless claims moved higher for the first time in a month, increasing from last week’s upwardly-revised reading of 520,000 to 531,000. This tops the consensus of 519,000, according to Bloomberg.
The 4-week moving average remained in a downward trend but declined by just 750 to 532,250. News was a bit brighter for continuing claims, which declined by 98,000 to 5.9 million, though much for the decline is probably coming from recipients who no longer qualify for the six months of standard benefits.
Weekly jobless claims can be volatile but provide nearly a real-time look at economic activity. The decline from earlier in the year has been painfully slow but shows that companies are gradually growing more optimistic about economic prospects.
But with the unemployment rate poised to crack 10% for the first time since 1983, leaders in Congress are starting to talk about another stimulus package. In my view, a more efficient use of the original $787 billion plan would suffice.
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