"Slower growth in the goods-producing sector looks likely to have acted as a drag on the wider economy"
-Markit chief economist Chris Williamson
More Americans than expected filed applications for jobless benefits during the last week, as manufacturing activity growth slowed slightly this month. Initial jobless claims climbed by 18,000 reaching a total of 354,000 in the week ended June 15, up from a revised 336,000 in the prior week and well above analysts' projections for a 340,000 reading. Even despite a rise above 350,000 level for the first time in three weeks, unemployment claims still remain at a level consistent with a mildly improving labour market, which is considered by the Fed as one of key indicators of economic health. In the meantime, the less-volatile four-week moving average edged higher by 2,500 to 348,250. The U.S. economy has added an average of 189,000 new working places per month so far during the year. According to the latest forecasts from the Federal Reserve, hiring will pick up toward the end of this year and is expected to gain the momentum further over the next few years. The unemployment rate, which now stands at 7.6%, is projected to reach a low of 6.5% by the end of the next year, and perhaps even dip below 6% in 2015.
A separate report showed that the nation's manufacturing output slowed slightly this month, with the Purchasing Managers' Index falling to 52.2 down from 52.3, still indicating an expansion. New export orders registered a contraction for a second month in a row, amid weak global demand.
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