Jobless Claims in U.S. Increase to Highest Level in Five Weeks
The impact of Hurricanes has started crystallizing as the number of people filing for unemployment benefits rose by 12,000 to 272,000 last week, the Labor Department report showed on Thursday.
The less-volatile four week average claims increased from 268,750 to 277,750, the highest since Feb. 2016.
In Florida, applications for unemployment benefits rose by more than 8,000 to 18,212, while Georgia recorded an increase of 4,917 to 7,917. In Texas, filings fell by 8,200, as the state recovers from Hurricane Harvey.
According to the Labor Department, some regions were unable to process claims or displaced workers couldn’t file for claims. Therefore, the complete impact of the hurricanes hasn’t fully emerged.
While the numbers may continue to fluctuate for few weeks, the volatility will likely be temporary as those in the affected regions return to work. Also, before the hurricane disrupted businesses in Florida and Texas, unemployment claims were at the lowest level in more than 40 years.
The U.S. gross domestic product was revised up to 3.1 percent in the second quarter, initially reported as 3 percent. Another indication of continuous growth in the world’s largest economy.
Consumer spending, the largest part of the economy, grew at unrevised 3.3 percent rate. Suggesting American households are still buying despite the headwinds and lackluster wage growth.
The U.S. dollar dipped slightly against the Yen on Thursday to 112.52 but sustain its gains against the Pound Sterling by rising 0.40 percent to $1.3441. That was after BOE’s chief economist, Andy Haldane called for a rate hike.
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