Weekly jobless claims unexpectedly jumped from 404,000 in the prior week to 429,000, the third consecutive week above 400,000 and the highest level in three months.
The 4-week moving average increased by 9,250 to 408,500, and continuing claims fell 68,000 to 3.64 million.
GDP in Q1 expanded by 1.8% according to preliminary data, and given the unexpected rise in jobless claims over the past three weeks, it appears that the slowdown in economic activity is continuing into Q2.
Oil has risen by about $20-25 per barrel in recent months to just over $110 per barrel but remains well below the all-time high of $145. Gasoline prices, however, have surged by about a $1 per gallon in the last year and are hovering near the high hit in 2008.
Whether the slowdown is directly related to the spike in gasoline prices or the glitches in the supply chain caused by the earthquake in Japan, the unexpectedly large rise in jobless claims over the past three weeks is disconcerting.
It not only points a further slowing in the recovery, but it may also be signaling fewer gains on the employment front.
0 comments:
Post a Comment