Initial Jobless Claims Fall

Weekly initial jobless claims are out.

Claims fell 336,000 in the week ended November 2, basically in line with economist expectations of 335,000.

That’s down from 345,000 the week before (revised from 340,000).

“The advance number for seasonally adjusted insured unemployment during the week ending October 26 was 2,868,000, an increase of 4,000 from the preceding week’s revised level of 2,864,000,” according to the report.

“Companies may be feeling more confident as vehicle sales and housing maintain gains and manufacturing shows signs of accelerating,” reported Bloomberg’s
Jeanna Smialek. “Fewer dismissals set the groundwork for a pickup in hiring, which is needed to revive the consumer spending that accounts for about 70 per cent of the economy.”

“[W]e posit that we are now past a series of special factors (CA and NV computer upgrades, partial federal government shutdown) that dampened and then inflated the data over the last two months,” Citi’s Peter D’Antonio wrote to clients earlier this week. “However, the four-week moving average will continue to be influenced by those factors for a few more weeks to come. Separately, beneficiaries rose a second week and the insured rate held at 2.2%. Though remarkably stable since August, we think that both figures have been dampened somewhat by the California claims backlog.”

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