"It seems like the Labor Department is pretty adamant that this is more of a wonky seasonal adjustment than something we need to put too much stock in"
- Michael Hanson, US Economist at Bank of America-Merrill Lynch
According to Labor Department data, the number of applications for unemployment benefits fell by 26,000 to 350,000 last week, reaching the lowest level since March 2008.
However, the data may be distorted, as automakers postponed annual closures for retooling in order to be able to respond to a strong demand, which is a positive sign for the U.S. economy.
"While today's report does not signal a meaningful recovery in the labor market, it may point to continued strength in the auto sector," said Jeffrey Greenberg, an economist at Nomura in New York.
"It seems like the Labor Department is pretty adamant that this is more of a wonky seasonal adjustment than something we need to put too much stock in," said Michael Hanson, U.S. economist at Bank of America-Merrill Lynch. "The underlying trend in claims is probably still in the 370,000 range."
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