Weekly listings in the United States are nearing their lowest level in 49 years; increase in factory orders

WASHINGTON (Reuters) – The number of Americans who filed for jobless claims fell to a 49-year low last week, signaling continued strength in the labor market, which is expected to continue. support economic growth.

The labor market, seen as close or full employment, regularly stimulates wage growth, which could help support consumer spending as the government's $ 1.5 trillion tax cut Trump fades.

"Labor market dynamics remain strong and we expect the unemployment rate to continue to decline," said John Ryding, chief economist at RDQ Economics in New York.

Initial claims for state unemployment benefits fell from 8,000 to 207,000 seasonally adjusted for the week ended Sept. 29, the Labor Department said Thursday. This offset the bulk of the increase from the previous week when claims were boosted by Hurricane Florence, which hit North Carolina and South Carolina in mid-September.

Claims fell to 202,000 in the week ending September 15, the lowest level since November 1969. Economists polled by Reuters predicted fewer than 213,000 claims in the last week . The Ministry of Labor said claims for North and South Carolina continued to be affected by the storm.

The four-week moving average of initial claims, considered a better measure of labor market trends, as it avoids week-to-week volatility, increased from 500 to 207,000 last week.

The report hardly touched the US financial markets.

The claims data have no impact on the September employment report, due to be released on Friday. According to a Reuters study by economists, non-farm payrolls likely increased by 185,000 in September, after increasing by 201,000 in August. The unemployment rate is expected to fall by a tenth of a percentage point to stand at 3.8%, a trough reached in 18 years in May.

The growth in the payroll, however, could surprise upward, data released Wednesday showing an increase in recruitment by private companies in September and an increase in jobs in the private sector.

The Federal Reserve raised interest rates last week for the third time this year and removed the reference to "accommodative" monetary policy.

FACTORY ORDERS REBOUND

In a separate report released on Thursday, the Commerce Department said new orders for products manufactured in the United States had registered their largest increase for nearly a year in August, but that signs of weak consumer spending were companies in equipment for the manufacturing sector suggested a slowdown.

Orders for industrial goods rose 2.3%, the largest increase since September 2017, fueled by an increase in aircraft demand, following a 0.5% drop in July. Orders rose 8.6% year over year in August.

The manufacturing sector, which accounts for about 12% of the US economy, is buoyed by robust domestic demand, but the momentum is expected to gradually slow in the face of a labor shortage, to one more trade war. in addition, between the United States and China, a strong dollar and a moderate global climate. growth.

A survey released Tuesday by the Institute of Suppliers for Supply Management showed that plant activity had declined from the peak reached in 14 years in September.

In August, orders for transportation equipment climbed 13.1%, the largest increase since June 2017. This increase reflects a strong 69.1% increase in volatile orders for civil aircraft and parts. . Orders for aircraft and defense pieces soared 17.0% in August. Transportation orders fell 3.6% in July.

Motor vehicle orders rose 1.0% in August after a 1.6% gain in July. Orders for primary metals, metal products and electronic equipment, appliances and electronic components have increased. But orders for machinery, computers and electronics dropped.

The Commerce Department also said that non-defense capital goods orders for the month of August excluding aircraft, as a measure of corporate spending plans, fell by 0.9% instead of 'a drop of 0.5% as indicated last month. Orders for these basic capital goods increased 1.5% in July.

Shipments of basic equipment goods, used to calculate office equipment expenses in the Gross Domestic Product report, fell 0.2% in August instead of a 0 increase, 1% as indicated last month.

Shipments of basic equipment increased 1.2% in July. Business equipment spending slowed in the second quarter, following a sharp increase since the first quarter of 2017.