"We've seen a big pickup in hiring. As long as the labor market holds up, the economy will reaccelerate."
- RBS Securities Inc.
For a second consecutive week less than 300,000 people are applying for unemployment benefits in the United States. According to Department for Labour data, in total 291,000 Americans filed for jobless insurance for the week ended March 13. The indicator was released slightly better than predicted at 295,000 but marginally worse than during the preceding one-week period. Alongside, last week was the one when US government is surveying employers on payrolls, meaning that the world's largest economy may register a further strong increase in employment for the previous and current months. Jobless claims are considered to be one of the most important indicators of labour market's health, which is a benchmark for the Federal Reserve to determine its monetary policy stance. Earlier on Wednesday, the Fed announced a slower than previously estimated pace of rate's hike, but the first increase may take place as soon as June.
In the meantime, US current account deficit retreated substantially in the fourth quarter of the year 2014, mainly due to decrease in companies' investment earnings from their foreign branches. The negative gap surged 14.7% to reach $113.5 billion during three months ended December 31. It implies the largest deficit in more than two years, and is significantly higher than $98.9 billion registered in July-September quarter of the previous year.
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