"We're not making progress the way we'd like to,"
- Robert Brusca, president of Fact & Opinion Economics
The world's largest economy expanded at a faster pace than a quarter ago, however, still at anaemic rate at the end of last year. The Commerce Department said Friday, that the U.S. economy grew by 0.4% in the October-December quarter, up from 0.1% growth recorded in the previous quarter, but below analysts' forecasts, who claimed for a 0.5% growth. The revision reflected stronger business investment and export sales. Despite the sluggish growth rate, there is hope that growth will accelerate in early 2013, even despite higher taxes and cuts in government spending.
Also Thursday, the Labour Department data showed that the number of Americans, who applied for jobless benefits jumped to the highest level in more than a month, bringing a halt to the recent progress in the labour market. The initial jobless claims rose by 16,000 to 357,000 in the week ended March 23, up from 341,000 a week earlier. Meanwhile, the less-volatile four-week moving average climbed from the lowest level in five years.
"We're not making progress the way we'd like to," said Robert Brusca, president of Fact & Opinion Economics in New York, who projected claims would climb to 350,000. "It's still a very disappointing picture for jobs."
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