NEW US claims for jobless benefits hit a seven-month low last week and permits for future home construction rebounded strongly in October, in the latest data to suggest the American economy was gaining traction.
The improving economic picture was spoiled somewhat by another report yesterday showing factory activity in the mid-Atlantic region slowed this month on weak orders. However, employers hired more workers and increased working hours.
Initial claims for state unemployment benefits fell 5,000 to 388,000, official figures revealed, pushing a four-week average below the 400,000 mark for the first time since April.
The report covered the survey period for the federal government’s employment count for November and offered hope that hiring accelerated this month after payrolls rose 80,000 in October.
First-time claims dropped 16,000 between the October and November survey weeks. The federal government will release its job count on December 2nd.
The weak labour market, marked by a 9 per cent unemployment rate, has been one of the hurdles to stronger economic growth.
Outside the jobs market, there were signs of stability in housing, with permits for home building soaring 10.9 per cent to a seasonally adjusted annual rate of 653,000 last month.
While new construction fell 0.3 per cent to annual rate of 628,000 units, economists believe residential building will soon contribute to growth. –(Bloomberg)
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