"The labor market is achieving somewhat better footing and housing data in May were showing some signs of revival"
- llen Hughes-Cromwick, Ford's chief economist
The number of people seeking unemployment benefits unexpectedly fell last week, adding to latest signs of the nation's labour market strength. Jobless claims dropped 3,000 to 302,000 in the week ended July 12, according to the latest figures from the Labor Department, while analysts had projected a decline to 310,000. The number of Americans continuing to receive unemployment benefits plunged to the lowest level in seven years. The four-weak average of claims, considered a better gauge of labour market trends, fell 3,000 to 309,000, the lowest level since June 2007. Claims tend to be volatile around the period after the July 4 holiday, when auto makers normally shut down plants for retooling. Labor Department, however, said there were no specific factors impacting the state level data. An increase in hiring and steady decline in unemployment are among reasons the Federal Reserve officials are trimming monthly asset purchases and plan to wind down stimulus measures altogether by the end of the year.
Meanwhile, another report showed that housing starts surprisingly declined to the lowest level in nine months, plummeting as much as 9.3% to an 893,000 annual rate, down from 985,000 recorded in May, confirming the Fed Chairwoman Janet Yellen's view that progress in the housing sector has been disappointing this year.
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