The latest data on weekly jobless claims in the U.S. showed little improvement, adding to growing concern that the labor market recovery could be stalling, according to Reuters. On Thursday, the Commerce Department reported that initial claims for unemployment insurance dropped by only 6,000 in the week ending May 28 to a seasonally adjusted level of 422,000. The drop was less than the fall to 415,000 that economists had forecast, which along with other weak data prompted Camilla Sutton of Scotia Capital to say, “Every indication we have so far points to a slightly softer labor market.”
Meanwhile, the Bloomberg consumer comfort index gained in the week ending May 29 to reach -47.1 from the -48.4 recorded in the prior period. However, the gauge remains low, hovering just over two points above the nine-month low recorded two weeks earlier. Sub-indices of personal finances, the buying climate, and of the economy overall were all up at the last check. Nonetheless, Robert Brusca of Fact & Opinion Economics said, “The consumer is not doing very well these days,” adding, “There is nothing in the weekly survey that gives us any confidence things are getting better. There is really not much improvement in the economy.”
Click here to read the story on jobless claims from Reuters.
Click here for coverage of consumer comfort from Bloomberg News.