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| Version 2 | Version 3 |
|---|---|
| Job market jitters add to US woes | Job market jitters add to US woes |
| (about 20 hours later) | |
| More downbeat news on the US job market has added to economic jitters despite, glimmers of hope from data on the country's service sector. | More downbeat news on the US job market has added to economic jitters despite, glimmers of hope from data on the country's service sector. |
| An unexpected rise in new applications for unemployment benefits unnerved some ahead of Friday's jobless data. | An unexpected rise in new applications for unemployment benefits unnerved some ahead of Friday's jobless data. |
| Meanwhile reports by many retailers of sluggish sales in the back-to-school period added to woes. | |
| However the US service sector grew in August, beating expectations, according to the Institute for Supply Management. | However the US service sector grew in August, beating expectations, according to the Institute for Supply Management. |
| The ISM's non-manufacturing index registered 50.6 in August from 49.5 in July. A figure above 50 denotes growth. | The ISM's non-manufacturing index registered 50.6 in August from 49.5 in July. A figure above 50 denotes growth. |
| 'Perfect storm' | 'Perfect storm' |
| The Labor Department said new applications for unemployment insurance rose by 15,000 from the previous week - going against expectations of a fourth week of falls. | The Labor Department said new applications for unemployment insurance rose by 15,000 from the previous week - going against expectations of a fourth week of falls. |
| "The initial jobless claims number was higher than expected," said Dave Rovell of Canaccord Adams. | "The initial jobless claims number was higher than expected," said Dave Rovell of Canaccord Adams. |
| "Everybody is worried about the unemployment number (which comes out on Friday). It's just a perfect storm." | "Everybody is worried about the unemployment number (which comes out on Friday). It's just a perfect storm." |
| Among retailers, Wal-Mart saw higher August sales which analysts put down to its heavy discounts as customers looked for bargains amid high food and fuel prices. | Among retailers, Wal-Mart saw higher August sales which analysts put down to its heavy discounts as customers looked for bargains amid high food and fuel prices. |
| But others such as Wet Seal Inc, Abercrombie & Fitch and Saks struggled. | But others such as Wet Seal Inc, Abercrombie & Fitch and Saks struggled. |
| Inflation risk | Inflation risk |
| Separate ISM data showed productivity better than forecast in the second quarter, while labour costs declined, official data showed. | Separate ISM data showed productivity better than forecast in the second quarter, while labour costs declined, official data showed. |
| The figures suggest the world's largest economy is in better shape than had previously been thought. | The figures suggest the world's largest economy is in better shape than had previously been thought. |
| Productivity - the amount of output for every hour worked - climbed to an annual rate of 4.3% in the three months to June, the Commerce Department said. | Productivity - the amount of output for every hour worked - climbed to an annual rate of 4.3% in the three months to June, the Commerce Department said. |
| In the first three months of the year, productivity rose 2.6%. | In the first three months of the year, productivity rose 2.6%. |
| Simultaneously, labour costs dropped to 0.5% on a yearly basis, reversing the rise seen in the three months to March when they were 1.2% higher. | Simultaneously, labour costs dropped to 0.5% on a yearly basis, reversing the rise seen in the three months to March when they were 1.2% higher. |
| For employers, if labour costs rise quicker than productivity, it can contribute to quickening inflation. | For employers, if labour costs rise quicker than productivity, it can contribute to quickening inflation. |
| The productivity data was viewed positively by analysts, who argue it helps keep a check on inflation at a time when firms are facing a sharp rise in costs. | The productivity data was viewed positively by analysts, who argue it helps keep a check on inflation at a time when firms are facing a sharp rise in costs. |
| Economic uncertainty | Economic uncertainty |
| The latest figures reinforce the view held by some analysts that the US might have seen the worse of the downturn, while Europe is still being squeezed. | The latest figures reinforce the view held by some analysts that the US might have seen the worse of the downturn, while Europe is still being squeezed. |
| In August, figures showed the world's largest economy expanded at a revised rate of 3.3% annually during the second quarter of 2008, much higher than its first estimate of 1.9%. | In August, figures showed the world's largest economy expanded at a revised rate of 3.3% annually during the second quarter of 2008, much higher than its first estimate of 1.9%. |
| But there is still much uncertainty surrounding the outlook for the US economy. | But there is still much uncertainty surrounding the outlook for the US economy. |
| Only a day earlier, on Wednesday, the US central bank said the economy faced slow growth and higher prices. | Only a day earlier, on Wednesday, the US central bank said the economy faced slow growth and higher prices. |
| The Federal Reserve's so called Beige Book report said economic activity was "weak, soft or subdued" in the US, as consumers tightened their belts. | The Federal Reserve's so called Beige Book report said economic activity was "weak, soft or subdued" in the US, as consumers tightened their belts. |