- Mike Englund, chief economist at Action Economics LLC
The closely-watched labour market is showing signs of stabilization as the number of Americans who applied last week for the jobless benefits fell, suggesting companies are refraining firing stuff even despite deceleration in the economy and recent budget cuts and tax hikes. According to data provided by the Labor Department, initial jobless claims dropped by 12,000 to a seasonally adjusted 323,000 in the week ended June 8. Economists, however, expected a flat reading. At the same time, the less-volatile four-week moving average declined to 345,250 last week, down from 352,500 a week earlier. Fewer dismissals are adding to evidence businesses are paring employees as much as they can, with payrolls rising more than expected last month.
In a separate report the Commerce Department said that Americans stepped up spending at retailers in May at the fastest pace in three months, pushed by more car purchases. The nation's retail sales gained 0.6% in May from April, when they rose 0.1%. The increase was led by a 1.8% jump in auto sales, posting the biggest monthly gain in six months. At the same time, excluding volatile autos, gas and building supplies, core retail sales jumped 0.3%.
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