The US equities markets and the dollar are roaring back has jobless claims rise and the advance gross domestic product slows from the forth quarter’s 4.1 percent.
Jobless claims in the week ending on January 25 increased by 19K, totalling 348K and the highest since mid-December.The Labor Department noted that claims are sometimes higher due to adjustments in seasonality during the holiday weeks. Analysts were expecting 331K, while last week’s data was revised upward from 226K to 229K.
However, given the continued mixed results, some analysts cannot help but seek the pin-hole of light shinning through the labor market. Ryan Wang, economist at HSBC Securities, said weekly layoffs have declined over the last month and “consumers are gradually becoming less pessimistic about the labor market.” However, layoffs haven’t been a large concern in years. Hiring is. And with 90 million Americans not participating in the job search shows the pessimism in the market.
The gross domestic product did expand 3.2 percent, down from last quarter’s print of 4.1 percent. This also fell below expectations of 3.3 percent. Consumer did climb 3.3 percent but was lower than forecasted. Government spending declined, as well as home construction following the largest bullish increase since 2008. Residential construction fell 9.8 percent, creating a reduction of GDP by .3 percent.