- Mark Zandi, chief economist at Moody's Analytics
The number of Americans seeking jobless benefits unexpectedly increased last week, but remained at a level that is consistent with gradual improvement in the labour market. Initial claims for unemployment benefits rose 6,000 to a seasonally adjusted 278,000 in the week ended February 27. Claims have climbed the past two weeks, but are still down from the end of January. The four-week moving average of claims, which smoothes weekly volatility, fell 1,750 to 270,250 last week. A report earlier in the week showed US private sector created more jobs than expected in February, another sign that the US job market remains resilient despite economic weakness overseas and volatility in financial markets. According to payroll processor ADP, US private companies hired 214,000 workers last month, whereas economists had expected a gain of 190,000 jobs. Investors now await US Labor Department's more comprehensive non-farm payrolls report on Friday, which includes both public and private-sector employment. Economists are forecasting total non-farm employment to have grown 190,000 in February, while the unemployment rate is predicted to remain unchanged at 4.9%.
A separate report showed the US service sector grew more slowly in February, according to the Institute for Supply Management. The index of non-manufacturing activity dropped to 53.4 from 53.5 in January.
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