- Credit Agricole
For the first time since early September initial unemployment claims broke above the 300,000 threshold, rising to a seasonally adjusted 313,000 in the week ended November 22, but the underlying trend remained consistent with a strengthening labour market. The four-week moving average of claims, considered a better gauge of labour market trends as it strips out weekly volatility, remained below 300,000 for an 11th consecutive week, adding to signs that the job market was improving. Continuing claims came in at 2.316 million, compared with last week's revised reading of 2.333 million. Meanwhile, the Fed's closely looking gauge of inflation rose 1.6% on annualized basis, while on a monthly basis core PCE Price Index inched higher 0.2%, meaning that consumers are buying goods and services, thus stimulating the economy. In October, consumer spending, which accounts for more than two-thirds of US economic output, rose 0.2% after being flat a month earlier, the Commerce Department said. Low gasoline prices as well as a firmer labour market are bolstering consumer spending, which should help to shield the economy from slowing growth in China and the Euro zone, as well as a recession in Japan.
Also, a separate report showed core durable goods surprisingly declined for the second consecutive month in October, dropping 1.3% following the same magnitude fall in September.
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