US jobless claims fall, core capital goods orders grow incrementally

24 Aug (Reuters) – U.S. initial unemployment claims climb for second week in a row as labor market conditions remain tight despite aggressive interest rate hikes by the Federal Reserve Diminished.

The number of first-time applications for state unemployment benefits fell by 10,000 in the week ending Aug. 19 to 230,000 on a seasonally adjusted basis, the Labor Department said Thursday. Last week’s level was revised upward by 1,000 applications. Economists polled by Reuters had expected 240,000 claims in the past week.

Economists have predicted a weak labor market since the Fed began raising interest rates in March 2022, and unemployment insurance has fallen sharply following the recent bankruptcy of the Yellow Trucking Company, which employs about 30,000 people. Some are preparing for a noticeable increase in the number of applications.

But the expected shock has yet to arrive, with labor markets hoarding as employers struggle to find workers during the COVID-19 pandemic. continues to fall short of expectations. A strong labor market and slowing inflation have sparked optimism that a recession can be avoided.

“Six months is a big difference,” Comerica Bank chief economist Bill Adams said in a statement. I am back,” he said.

Claims reports show that the number of people receiving benefits after the first week of help on behalf of employment fell by 9,000 to 1.702,000 in the week ending August 12. became. These so-called continuing claims remain low by historical standards, indicating that some laid-off workers are experiencing short-term unemployment.

A separate report released Thursday by the Department of Commerce showed a modest rise in new orders for key U.S.-made capital goods in July, and will continue to rise even after business spending on equipment picked up in the second quarter. suggested that it is possible.

Orders for non-defense capital goods, excluding aircraft, a measure of corporate spending plans, rose 0.1%, but the June figure was revised to fall 0.4%, rather than the previous 0.1% increase.

The amendments suggested that rising borrowing costs may be putting pressure on corporate budgets.

Core capital goods shipments fell 0.2% in July, following a 0.1% decline in June. Shipments of non-defense capital goods, including aircraft, fell 1.1%. These are reflected in the calculation of capital expenditures in Gross Domestic Product measurements.

The government announced preliminary GDP estimates that the economy grew at an annualized rate of 2.4% in the second quarter, beating expectations that a sharp rise in interest rates would slow growth.

A combination of slowing inflation and a relatively resilient job market has led many economists to raise their GDP growth forecasts between the end of this year and 2024.

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