- Jim O'Sullivan, chief U.S. economist at High Frequency Economics
The U.S Department of Labor's latest report indicates that the number of jobless claims have slightly decreased during seven-day period, nonetheless surpassing experts' forecast. The number of jobless claims has decreased from 299,000 down to 298,000, helping push the eight-week average for new claims to below 300,000 for the first time since April 2006, well before the onset of the recession. Economists, however, predicted the number to remain on the 299,000 level. Meanwhile, according to the continuing claims report, number of people currently receiving benefits after an initial week of aid increased to 2.52 million from 2.50 million in a week period, falling behind experts' forecast of 2.51 million.
Separately, another report by the U.S Commerce Department has indicated that U.S economy expanded faster than first thought, growing by 4.2% in the second quarter and beating the government's initial reading of 4%, following a 2.1% contraction in a period before. That was the economy's biggest drop since the depths of the Great Recession, and it reflected mainly the impact of a harsh winter that kept consumers away from spending and disrupted factory production. Additionally, corporate profits have climbed by the most in nearly four years. Experts explain the phenomena by an increase in durable goods demand, strengthening job market and increase in consumer spending, which accounts for roughly 70% of the economy.
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