- MUFG Union Bank
The number of Americans applying for unemployment benefits increased from the lowest level in five months hit last week, but remained below a level associated with an improving labour market. Initial claims for jobless benefits rose 7,000 to a seasonally adjusted 265,000 for the week ended March 12, according to the Labor Department. However, the previous week was revised to show 1,000 fewer applications received than reported earlier. Claims have been below 300,000, a threshold associated with strong labour market conditions, for 54 weeks in a row, the longest run since 1973. The four-week moving average of claims, a better gauge of labour market trends as it strips out week-to-week volatility, rose 750 to 268,000 last week. Moreover, job openings rose to a six-month peak in January, while gauge of future economic activity climbed in February after two consecutive months of drops. The data should further fan fears of a looming recession and could keep the Fed on track to gradually hike interest rates this year. Job openings advanced by 260,000 to a six-month high of 5.5 million in January. While hiring declined in January, as employers are facing troubles finding qualified workers for open positions.
A separate report showed the current account deficit declined 3.6% to $125.3 billion in the fourth quarter. For 2015, the current account shortfall totalled $484.1 billion, the largest since 2008.
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