Weekly jobless claims in the US hit 49-year low

WASHINGTON (Reuters) – The number of Americans filing new jobless claims has fallen to near the lowest level of the past 49 years, and private staffing has been steadily increasing in August, indicating continued strength in the labor market.

The economy seems to be resisting a growing trade war between the United States and China, as well as tensions with other trading partners, including Canada, the United States. 39, European Union and Mexico, which have shaken the financial markets.

This should allow the Federal Reserve to raise interest rates this month for the third time this year.

"The economy is booming with jobless claims at levels never seen since the 1960s, giving the go-ahead to the Fed to raise rates later this month and remove some of the money." Economy, "said Chris Rupkey, chief economist in New York.

The Labor Department said Thursday that initial jobless claims fell from 10,000 to 203,000 for the week ended September 1st, the lowest level since December 1969.

Economists polled by Reuters had forecast claims rising to 214,000 over the past week. The four-week moving average of initial claims, seen as a better measure of labor market trends, by eliminating weekly volatility, dropped from 2,750 last week to 209,500, the lowest level since December 1969.

Although it has been reported that some companies were planning layoffs or layoffs due to the uncertainty caused by the Trump administration's protectionist trade policy, this has not yet been reflected in the claims data.

Economists say that, given the narrowness of the labor market, employers were reluctant to lay off workers. The labor market is considered close or to full employment.

US stocks were mixed after the data as US Treasuries were slightly higher. The dollar was less than a basket of currencies.

STRONG GROWTH IN EMPLOYMENT

In addition, the ADP's national employment report showed that the private payroll had increased by 163,000 jobs last month. July data were revised to show that private hires increased by 217,000 jobs instead of the 219,000 previously reported positions.

Economists polled by Reuters had forecast an increase of 190,000 jobs last month. The ADP report, developed in conjunction with Moody's Analytics, was released ahead of the government's most comprehensive employment report for the month of August, to be released Friday.

Although the ADP report contains a sporadic record predicting the private wage component of the jobs report, economists said the August data showed slower job growth.

"Employment growth is still well above the pace needed to absorb newcomers, which means that the unemployment rate, which is already unusually low, should continue to decline steadily," said economist Paul Ashworth. Chief Executive at Capital Economics in Toronto. .

According to a Reuters survey of economists, the non-farm payroll would have increased by 191,000 in August, up from 157,000 in July. The unemployment rate is expected to drop by a tenth of a point to 3.8%, returning to the lowest recorded in 18 years in May.

If August's employment report met market expectations on Friday, it should probably lead to a rate hike at the Fed's September 25-26 meeting.

The economy grew at an annualized rate of 4.2% in the second quarter, the fastest in almost four years. Data on consumer and business spending in July suggested strong economic growth early in the third quarter. However, trade tensions could undermine confidence and reduce spending.

The economy of the economy was highlighted by a report released Thursday by the Institute for Supply Management (ISM), which shows that its non-manufacturing activity index rose 2.8 points to 58, 5 last month. A reading above 50 indicates an expansion of the sector, which accounts for more than two-thirds of US economic activity.

The ISM survey indicates that survey respondents remained positive about the economy and the economy, but warned that "logistics, tariffs and employment resources continue to impact many sectors" .

While a fourth Commerce Department report indicated that manufactured goods orders fell 0.8% in July due to weak aircraft demand, business spending seemed to be picking up in the first quarter. beginning of the third quarter. Orders rose 0.6% in June.

July orders for non-defense equipment assets, excluding aircraft, which are considered a measure of corporate spending plans, jumped 1.6% from the previous year. increase by 1.4% as indicated last month. Orders for these basic capital goods increased 0.8% in June.

Shipments of basic capital goods, which are used to calculate commercial capital expenditures in the Gross Domestic Product Report, increased 1.0% in July from 0.9% as reported last month .

Shipments of basic capital goods increased 1.0% in June. Business equipment spending slowed in the second quarter, following a sharp increase since the first quarter of 2017.

A fifth report from the Department of Labor showed that non-farm productivity, which measures hourly output per worker, grew at an annualized rate of 2.9% for the quarter from April to June. This was the strongest pace since the first quarter of 2015. Productivity rose to a rate of 0.3% in the first quarter.