For the week ended March 19, the first seasonally adjusted unemployment claims came in at 187K, down 28K from the previous week's revised level. This is the lowest level for initial requests since September 6, 1969, which was 182K. The previous week's level was revised upwards by 1K from 214K to 215K. The 4-week moving average was 211,750, down 11,500 from the previous week's revised average. The previous week's average was revised up by 250 from 223K to 223,250. In the week ending March 12, continued requests for state aid fell to 1.35 million, the lowest level since 1970.

Unemployment insurance claims fell to their lowest level since 1969 last week as demand for labor far outstripped supply and widespread inflation kept the incentive to work high. The decline in demands is consistent with a labor market where employers are desperately trying to hold on to workers and attract new ones. Applications remain low as the combination of declining savings and decades of high inflation has increased Americans' fiscal incentive to work. Tight labor market conditions are also confirmed by record low unemployment claims. Strong hiring in the coming months will support claims for unemployment benefits to remain at historically low levels in the near term. From the Fed's point of view, if confidence in the employment market is to be established with the data coming in, a 50 basis point increase in interest rates is possible at any of the upcoming meetings.

Durable goods orders fell 2.2% in February, compared to market expectations of 0.5% decline. This was a sharp comeback after gaining 1.6% in January. Meanwhile, core durable goods orders fell 0.6% month on month and also made a sharp comeback from the 0.8% growth seen in January. There was a 0.5% increase in the narrowest item concerning growth.

The decline in aircraft orders seems to have dragged down the total durable goods orders in February. The price effect, on the other hand, is reflected in the increase in orders in non-shipping categories. Businesses in regional fed surveys still say they expect to invest more in the coming quarters. However, new supply bottlenecks and weak quarterly closing potential for vehicle investment may soften inflation-adjusted spending towards the middle of the year. On the Fed's point of view, the weakening of growth is a handicap, but the desire to increase interest rates will continue without dragging investment and growth into the recession zone on the basis of the fight against inflation.

Kaynak
Hibya Haber Ajansı