This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.guardian.co.uk/business/2013/may/30/us-jobless-claims-economic-growth

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
US jobless claims rise modestly as economic growth revised down US jobless claims rise modestly as economic growth revised down
(4 months later)
The number of Americans seeking unemployment aid rose 10,000 last week to a seasonally adjusted 354,000 – a sign layoffs have increased. But the level of applications is consistent with steady hiring.The number of Americans seeking unemployment aid rose 10,000 last week to a seasonally adjusted 354,000 – a sign layoffs have increased. But the level of applications is consistent with steady hiring.
The Labor Department says the four-week average – a less volatile measure – increased 6,750 to 347,250, the third straight gain. The average had fallen to a five-year low of 338,000 earlier this month.The Labor Department says the four-week average – a less volatile measure – increased 6,750 to 347,250, the third straight gain. The average had fallen to a five-year low of 338,000 earlier this month.
The news came as US economy grew at a modest 2.4% annual rate from January through March, slightly slower than initially estimated. Consumer spending was stronger than first thought, but businesses restocked more slowly and state and local government spending cuts were deeper.The news came as US economy grew at a modest 2.4% annual rate from January through March, slightly slower than initially estimated. Consumer spending was stronger than first thought, but businesses restocked more slowly and state and local government spending cuts were deeper.
The Commerce Department said Thursday that economic growth in the first quarter was only marginally below the 2.5% rate originally estimated, but still much faster than the 0.4% growth during the October-December quarter.The Commerce Department said Thursday that economic growth in the first quarter was only marginally below the 2.5% rate originally estimated, but still much faster than the 0.4% growth during the October-December quarter.
Weekly unemployment benefit applications are a proxy for layoffs. They have been at about 350,000 or below for most of this year. At the same time, hiring has been solid. In the past six months, employers have added an average of 208,000 jobs per month – up from an average of only 138,000 in the previous six months.Weekly unemployment benefit applications are a proxy for layoffs. They have been at about 350,000 or below for most of this year. At the same time, hiring has been solid. In the past six months, employers have added an average of 208,000 jobs per month – up from an average of only 138,000 in the previous six months.
The unemployment rate has fallen to a four-year low of 7.5%, down from 10% in October 2009. Some of the decrease is because many people have given up looking for work. The government counts people as unemployed only if they are actively searching for a job.The unemployment rate has fallen to a four-year low of 7.5%, down from 10% in October 2009. Some of the decrease is because many people have given up looking for work. The government counts people as unemployed only if they are actively searching for a job.
Economists believe growth is slowing to around a 2% rate in the April-June quarter, as the economy adjusts to federal spending cuts, higher taxes and further global weakness. Still, many say the decline may not be as severe as once thought. That's because solid hiring, surging home prices and record stock gains should keep consumers spending.Economists believe growth is slowing to around a 2% rate in the April-June quarter, as the economy adjusts to federal spending cuts, higher taxes and further global weakness. Still, many say the decline may not be as severe as once thought. That's because solid hiring, surging home prices and record stock gains should keep consumers spending.
The government's second look at GDP in the first quarter showed that consumer spending roared ahead at a 3.4% rate. That's the fastest growth in more than two years and even stronger than the 3.2% rate estimated last month.The government's second look at GDP in the first quarter showed that consumer spending roared ahead at a 3.4% rate. That's the fastest growth in more than two years and even stronger than the 3.2% rate estimated last month.
Healthy growth in consumer spending shows many Americans are shrugging off an increase this year in social security taxes that has reduced most paychecks.Healthy growth in consumer spending shows many Americans are shrugging off an increase this year in social security taxes that has reduced most paychecks.
And more demand from consumers could also prompt businesses to restock at a faster rate later this year. Business inventories grew in the first quarter but at a slightly slower pace than first estimated. That was a key reason for the small revision.And more demand from consumers could also prompt businesses to restock at a faster rate later this year. Business inventories grew in the first quarter but at a slightly slower pace than first estimated. That was a key reason for the small revision.
Employers have added an average of 208,000 jobs a month since November – well above the monthly average of 138,000 during the previous six months.Employers have added an average of 208,000 jobs a month since November – well above the monthly average of 138,000 during the previous six months.
The weakest area of the economy continues to be government spending, which fell for the 10th quarter out of the last 11. The 4.9% rate of decline was even larger than first estimate, reflecting further drops in defence spending and weaker activity at the state and local level than first estimate.The weakest area of the economy continues to be government spending, which fell for the 10th quarter out of the last 11. The 4.9% rate of decline was even larger than first estimate, reflecting further drops in defence spending and weaker activity at the state and local level than first estimate.
And with the federal government furloughing workers and trimming other spending to meet the mandates of the sequester that took effect in March, government activity will be a drag on growth for the rest of the year.And with the federal government furloughing workers and trimming other spending to meet the mandates of the sequester that took effect in March, government activity will be a drag on growth for the rest of the year.
The housing recovery continued to add to growth at the start of the year. Home construction, one of the economy's top performers, grew at an annual rate of 12.1% in the first quarter, its third consecutive quarter of double-digit growth.The housing recovery continued to add to growth at the start of the year. Home construction, one of the economy's top performers, grew at an annual rate of 12.1% in the first quarter, its third consecutive quarter of double-digit growth.
Businesses, however, reduced the pace of their investment in equipment and computer software. That slowed to a growth rate of 4.6% in the first quarter, down from growth of 11.8% in the fourth quarter.Businesses, however, reduced the pace of their investment in equipment and computer software. That slowed to a growth rate of 4.6% in the first quarter, down from growth of 11.8% in the fourth quarter.
Our editors' picks for the day's top news and commentary delivered to your inbox each morning.