US initial jobless claims rise to 271K last week

Source: Dukascopy Bank SA
"Companies are holding onto their employees very tightly, and it shows a strong need for labor"
 -Russell Price, senior economist at Ameriprise Financial Inc.


The number of Americans, who applied for unemployment assistance in the week ended June, rose but remained at a level consistent with a strengthening labour market. According to the US Department of Labor, US initial jobless claims increased by 3,000 to a seasonally adjusted 271,000, up from a revised 268,000 in the preceding week. Initial unemployment claims have held below the 300,000-level for 16 straight weeks, which is associated with a improving labour market. The four-week moving average came in at 273,750, a drop of 3,250 from the previous week's total of 277,000. The monthly average is seen as a more accurate indicator of labour trends as it irons out volatility in the week-to-week data.

Meanwhile, a separate report showed US inflation remained below the Fed's 2% annual goal in May. The personal consumption expenditures price index, which is the Fed's preferred inflation gauge, climbed 0.2% in May from a year earlier. The indicator has undershot the central bank's target for 37 consecutive months, the longest stretch since the first half of 1960s. Excluding the volatile components of food and energy, prices increased 1.2% in May from a year earlier, falling from revised annual gains of 1.3% in April and 1.4% in March. Core inflation in May recorded its smallest annual growth since February 2014. Overall prices edged higher by 0.3% in May from the prior month, while core prices climbed 0.1% from April.


© Dukascopy Bank SA

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