Jobless claims head lower
Business investment shows solid gains in Aug.
By Rex Nutting, CBS.MarketWatch.com
Last Update: 8:46 AM ET Sept. 26, 2002
WASHINGTON (CBS.MW) - Business are investing more and laying off less, the government reported Thursday.
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After seven weeks of rising layoffs, the rolling average for initial claims for state unemployment benefits inched lower in the most recent week, the Labor Department said Thursday.
The four-week average of first-time jobless claims dropped by 1,000 to 419,000, thanks to a 24,000 decline to 406,000 in the week ending Sept. 21.
The weekly number is the lowest in five weeks.
Meanwhile, new orders for durable goods fell by 0.6 percent in August, considerably less than the 2.7 percent decline expected.
The Commerce Department said core investment good orders rose 5.9 percent on the heels of a 12.5 percent gain in July.
The rolling average for initial jobless claims had risen by 40,000 since the first of August, signifying a new round of job cutting by U.S. companies. The four-week moving average for claims smoothes out noise in the weekly data to establish a clearer trend in the labor market.
Meanwhile, the moving average for continuing claims continued to climb, gaining 29,500 to 3.58 million, the highest in two months. The figure does not include some 1.1 million workers receiving extended federal unemployment benefits.
In the week ending Sept. 14, continuing claims rose by 89,000 to 3.68 million, the highest in three months.
Weekly claims are considered to be one of the most reliable real-time indications of the economy's health. They are based on actual filings at state unemployment offices around the nation. First-time claims are a mark of new layoffs, while the continuing claims data gauge new hiring.
Only a fraction of unemployed workers are eligible for unemployment insurance benefits. In August, the Labor Department classified some 8.1 million workers as officially "unemployed" with millions more classified as having given up on finding a job.
The unemployment rate fell to 5.7 percent in August, but most economists believe the slow pace of hiring and the continuing job cuts will ultimately driven the jobless rate back above 6 percent.
The Federal Open Market Committee kept interest rates steady at its Tuesday meeting, although two members voted to cut overnight rates immediately to try to stimulate the economy.
The Fed's interest rate target is at a 40-year low of 1.75 percent. The 10-year Treasury note has also hit four-decade lows in recent days, dropping to 3.62 percent. Mortgage rates are the lowest they've been since Freddie Mac began tracking them in 1971.
Rex Nutting is Washington bureau chief of CBS.MarketWatch.com.
Ich als euer Anwalt sage Euch: "Deutscher Meister wird nur der BVB !"
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Business investment shows solid gains in Aug.
By Rex Nutting, CBS.MarketWatch.com
Last Update: 8:46 AM ET Sept. 26, 2002
WASHINGTON (CBS.MW) - Business are investing more and laying off less, the government reported Thursday.
CBS MARKETWATCH TOP NEWS
Bond bubble babble
O'Neill: Economy is fine, freedom is priceless
Report: Merrill assistant may plead in ImClone case
Vivendi to speed up asset sales but stay in film, TV
Free! Sign up here to receive Thom Calandra’s StockWatch e-newsletter!
TRACK THESE TOPICS
My Portfolio Alerts
Column: Economic Report
Create
Create A Portfolio | Create An Alert
After seven weeks of rising layoffs, the rolling average for initial claims for state unemployment benefits inched lower in the most recent week, the Labor Department said Thursday.
The four-week average of first-time jobless claims dropped by 1,000 to 419,000, thanks to a 24,000 decline to 406,000 in the week ending Sept. 21.
The weekly number is the lowest in five weeks.
Meanwhile, new orders for durable goods fell by 0.6 percent in August, considerably less than the 2.7 percent decline expected.
The Commerce Department said core investment good orders rose 5.9 percent on the heels of a 12.5 percent gain in July.
The rolling average for initial jobless claims had risen by 40,000 since the first of August, signifying a new round of job cutting by U.S. companies. The four-week moving average for claims smoothes out noise in the weekly data to establish a clearer trend in the labor market.
Meanwhile, the moving average for continuing claims continued to climb, gaining 29,500 to 3.58 million, the highest in two months. The figure does not include some 1.1 million workers receiving extended federal unemployment benefits.
In the week ending Sept. 14, continuing claims rose by 89,000 to 3.68 million, the highest in three months.
Weekly claims are considered to be one of the most reliable real-time indications of the economy's health. They are based on actual filings at state unemployment offices around the nation. First-time claims are a mark of new layoffs, while the continuing claims data gauge new hiring.
Only a fraction of unemployed workers are eligible for unemployment insurance benefits. In August, the Labor Department classified some 8.1 million workers as officially "unemployed" with millions more classified as having given up on finding a job.
The unemployment rate fell to 5.7 percent in August, but most economists believe the slow pace of hiring and the continuing job cuts will ultimately driven the jobless rate back above 6 percent.
The Federal Open Market Committee kept interest rates steady at its Tuesday meeting, although two members voted to cut overnight rates immediately to try to stimulate the economy.
The Fed's interest rate target is at a 40-year low of 1.75 percent. The 10-year Treasury note has also hit four-decade lows in recent days, dropping to 3.62 percent. Mortgage rates are the lowest they've been since Freddie Mac began tracking them in 1971.
Rex Nutting is Washington bureau chief of CBS.MarketWatch.com.
Ich als euer Anwalt sage Euch: "Deutscher Meister wird nur der BVB !"
