"It's possible that we could get a little bit more firing as the economy slows in the second quarter"
- Gennadiy Goldberg, a U.S. strategist at TD Securities Inc.
The number of Americans filing new claims for unemployment benefits rose more than initially was expected last week, suggesting the slowdown in economic growth is prompting an increase in firings, the Labor Department said Thursday. Initial jobless claims surged to a seasonally adjusted 360,000 in the week ended May 11, up from 328,000 a week earlier and outpacing analysts' expectations for a 332,000 reading. The reports of the unemployment claims can be choppy from week to week; nevertheless, they are considered to be one of the most important gauges of the job market's strength. The less-volatile four-week moving average jumped to 339,250, up from 338,000 a week earlier.
"It's possible that we could get a little bit more firing as the economy slows in the second quarter," said Gennadiy Goldberg, a U.S. strategist at TD Securities Inc. in New York.
Also Thursday, the Labor Department said that consumer prices in the world's largest economy fell 0.4% in April, driven by a sharp fall in petrol and other energy prices. Meantime, core inflation, which does not take into account food and energy, edged higher 0.1%, confirming earlier signals from wholesale prices that showed little inflationary pressure in the economy, even despite the Federal Reserve's huge stimulus programme.
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