U.S. Jobless claims hits seven year low


mentalfloss
#1
Hmm... I wonder what happened 7 years ago..

U.S. Jobless claims hits seven year low

WASHINGTON (Reuters) - New applications for U.S. unemployment benefits hit a seven-year low last week while consumer prices recorded their largest increase in 10 months in April, pointing to a firming economy.

Factory activity in New York state expanded at its quickest pace in nearly four years in May, but the otherwise bright growth picture was dimmed by another report on Thursday showing a surprise slump in industrial output last month.

"It's still consistent with the view that the economy is going to show stronger growth in the second quarter. The underlying momentum is improving but it's not definitive," said Josh Feinman, chief global economist at Deutsche Asset & Wealth Management in New York.

Initial claims for state unemployment benefits declined 24,000 to a seasonally adjusted 297,000 last week, the Labor Department said. It was the lowest reading since May 2007 and suggested a recent pick-up in job growth could be sustained.

In a second report, the department said the Consumer Price Index increased 0.3 percent last month as food prices rose for a fourth consecutive month and the cost of gasoline surged.

It was the biggest rise since June last year and added to March's 0.2 percent rise.

The combination of a strengthening jobs market and an uptick in inflation pressures should comfort the Federal Reserve as it scales back its monetary stimulus. However, it did not alter views the U.S. central bank will wait until at least the middle of 2015 before raising overnight interest rates from near zero.

The data failed to lift the spirits of U.S. stock investors, who focused on unexpectedly weaker earnings from Wal-Mart Stores Inc.. The dollar hit an 11-week high against the euro. Prices for U.S. government debt rose.

INFLATION STIRRING

In the 12 months through April, consumer prices rose 2.0 percent after gaining 1.5 percent in March. The increase was the

biggest since July last year and in part reflected prices coming off last year's low base when energy costs decreased.

Stripping out food and energy prices, the so-called core CPI rose 0.2 percent after advancing by the same margin in March. In the 12 months through April, the core CPI increased 1.8 percent, the biggest gain since August last year.

"By no means does the U.S. have an inflation problem in the traditional sense, but it doesn't feel as though 'lowflation' is dogging the economy either," said Michael Feroli, an economist at JPMorgan in New York.

The Fed targets 2 percent inflation, but it tracks an index that is running even lower than the CPI. Policymakers have worried that inflation is too low.

As for initial jobless claims, they have been volatile in recent weeks because of difficulties adjusting the data around the Easter and Passover holidays and school spring breaks.

The labor market is strengthening after wobbling in December and January because of an icy-cold winter, and economists expect a quickened pace of hiring to boost economic growth.

Growth braked sharply to a 0.1 percent annual rate in the first quarter as a very cold winter and businesses ordering fewer goods weighed on output. Second-quarter growth is forecast to top a 3 percent rate.

In a separate report, the Fed said output at the nation's mines, factories and utilities fell 0.6 percent in April after advancing 0.9 percent in March. It was the biggest drop since August 2012.

The decline reflected a decrease in factory production after two healthy monthly gains, and a plunge in utilities output as demand for heating moved back toward normal levels.

Better times may be ahead, however. A gauge of factory activity in New York state compiled by the New York Federal Reserve Bank jumped to 19.01 this month, the strongest reading since June 2010, as new orders surged. It was at 1.29 in April.

While manufacturing activity in the mid-Atlantic region slowed a bit in May, firms were upbeat about the outlook for the next six months, a report by the Philadelphia Fed showed.

(Reporting by Lucia Mutikani Additional reporting by Richard Leong in New York and Tim Ahmann in Washington; Editing by Andrea Ricci and Paul Simao)

U.S. jobless claims hit seven-year low, inflation ticks up (external - login to view)
 
EagleSmack
+1
#2  Top Rated Post
Can this Administration ever be honest?

Nearly 102 million working-age Americans jobless ? RT USA (external - login to view)

"As Washington trumpets last month’s drop in the unemployment rate (6.3 percent), it has quietly moved more than 988,000 Americans into the “not participating in the labor force” column. "

"Since just 58.9 percent of all working age Americans presently have employment, the US job picture remains in worse condition than it was when Barack Obama entered office. "
 
petros
+1
#3
I wonder why there are no American TFWs working enmass in Canada like Flips and Hindus?
 
EagleSmack
#4
Quote: Originally Posted by petrosView Post

I wonder why there are no American TFWs working enmass in Canada like Flips and Hindus?

Why would they when all is provided without working? Living off the state and federal government is becoming a career choice.
 
mentalfloss
#5
A percentage is more accurate than a total count.
 
petros
#6
Quote: Originally Posted by EagleSmackView Post

Why would they when all is provided without working? Living off the state and federal government is becoming a career choice.

Just like people from ON.
 
EagleSmack
#7
Quote: Originally Posted by mentalflossView Post

A percentage is more accurate than a total count.

"Since just 58.9 percent of all working age Americans presently have employment, the US job picture remains in worse condition than it was when Barack Obama entered office. "


 
mentalfloss
#8
Yea, because Dubya Dubya.

Duh.


It would be even worse if he was in office.
 
EagleSmack
#9
Quote: Originally Posted by mentalflossView Post

Yea, because Dubya Dubya.

Duh.


It would be even worse if he was in office.


 
mentalfloss
#10
Yup.

Conceding you know nothing once again.

It feels good man.
 
EagleSmack
+1
#11
Quote: Originally Posted by mentalflossView Post

Yup.

Conceding you know nothing once again.

It feels good man.

Tough getting OWNED by me each and every time isn't it MF?

I'd like to make you feel better and say I feel your pain but I simply don't.

Better luck next time!

 
petros
#12
Maybe they need some tax credits to boost the income of the unemployed?
 
mentalfloss
#13
Quote: Originally Posted by EagleSmackView Post

Tough getting OWNED by me each and every time isn't it MF?


Let me be the first to express how pwned I feel:

 
EagleSmack
#14
 
petros
#15
2014 shows a 60% drop in your statsical confidence.


How can they predict the future while lacking a grasp on the past?
 
mentalfloss
#16
Feels good man.

Edit: Yea petros, U.S = The whole world.

Now we know why people laugh at Americans.
 
EagleSmack
#17
I'm glad you've accepted your place among the cellar dwellers.
 
petros
#18
Sliding backwards feels good? Are you high again?
 
mentalfloss
#19
Quote: Originally Posted by EagleSmackView Post

I'm glad you've accepted your place among the cellar dwellers.

Yes Exxon is paying me handsomely to promote renewables for them.
 
EagleSmack
#20
Quote: Originally Posted by mentalflossView Post

Yes Exxon is paying me handsomely to promote renewables for them.

 
mentalfloss
#21
No, no it doesn't lol
 
EagleSmack
#22
Quote: Originally Posted by mentalflossView Post

No, no it doesn't lol

 

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