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Data signal improving economy
By Christopher S. Rugaber |
December 24, 2010, Friday
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Print Edition
Print Edition
ECONOMIC reports yesterday suggested United States employers are laying off fewer workers and businesses are ordering more computers and appliances.
The latest data confirmed that the economy is improving, even though too few jobs are being created to lower the 9.8 percent unemployment rate.
The number of people seeking benefits edged down by 3,000 to a seasonally adjusted 420,000, the US Labor Department said yesterday. That was the second drop in three weeks.
Weekly unemployment applications at about 425,000 signal modest job growth. But economists said applications would need to dip consistently to 375,000 or below to indicate a significant decline in unemployment. Weekly applications peaked during the recession at 651,000 in March 2009.
The four-week average, a less volatile measure, rose slightly to 426,000. The average had fallen for six straight weeks to the lowest level in more than two years.
Orders for long-lasting manufactured goods, excluding the volatile transport category, rose by the most in eight months in November, the US Commerce Department also reported yesterday. Factories saw demand increase for computers, appliances and heavy machinery.
Total orders for durable goods dropped 1.3 percent. That decline reflected sagging demand for aircraft and autos. But excluding transport, orders rose 2.4 percent, the best showing since last March.
Many analysts are predicting that the economy will grow at a 3.5-4 percent annual pace next year. That would be up from an expected 2.8 percent pace this year.
The US economy needs to grow by 5 percent for a full year to bring down the jobless rate by 1 percentage point. Many economists expect the rate to be near 9 percent by the end of next year.
The recent decline in the number of people seeking jobless benefits has encouraged economists.
Applications have fallen by more than 20,000 in the past month. That should translate into more hiring in December than the previous month, economists said.
The latest data confirmed that the economy is improving, even though too few jobs are being created to lower the 9.8 percent unemployment rate.
The number of people seeking benefits edged down by 3,000 to a seasonally adjusted 420,000, the US Labor Department said yesterday. That was the second drop in three weeks.
Weekly unemployment applications at about 425,000 signal modest job growth. But economists said applications would need to dip consistently to 375,000 or below to indicate a significant decline in unemployment. Weekly applications peaked during the recession at 651,000 in March 2009.
The four-week average, a less volatile measure, rose slightly to 426,000. The average had fallen for six straight weeks to the lowest level in more than two years.
Orders for long-lasting manufactured goods, excluding the volatile transport category, rose by the most in eight months in November, the US Commerce Department also reported yesterday. Factories saw demand increase for computers, appliances and heavy machinery.
Total orders for durable goods dropped 1.3 percent. That decline reflected sagging demand for aircraft and autos. But excluding transport, orders rose 2.4 percent, the best showing since last March.
Many analysts are predicting that the economy will grow at a 3.5-4 percent annual pace next year. That would be up from an expected 2.8 percent pace this year.
The US economy needs to grow by 5 percent for a full year to bring down the jobless rate by 1 percentage point. Many economists expect the rate to be near 9 percent by the end of next year.
The recent decline in the number of people seeking jobless benefits has encouraged economists.
Applications have fallen by more than 20,000 in the past month. That should translate into more hiring in December than the previous month, economists said.
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