Claims for Jobless Benefits Fall

Excerpt from an article in The New York Times
Friday, February 10, 2012

Claims for Jobless Benefits Fall, Suggesting a Trend 

By REUTERS

WASHINGTON (Reuters) — The number of Americans signing up for unemployment benefits fell unexpectedly last week, the latest sign of recovery in the nation’s labor market.

Initial claims for state jobless benefits dropped 15,000, to 358,000, the Labor Department said on Thursday. A four-week average of new filings, which provides a better view of the trend, hit its lowest level since April 2008.

The decline in first-time claims, which defied economists’ forecasts for a rise to 370,000, pointed to building strength in the labor market and improved the chances of another increase in employment this month.

“We are getting better employment growth and are seeing some signs that we are getting some self-sustaining aspects of economic activity,” said Michael Strauss, chief economist at Commonfund in Wilton, Conn.

Other data on Thursday showed a jump in wholesale inventories in December, suggesting the government’s fourth-quarter growth estimate could be revised higher.

But much will depend on the December trade data on Friday and a broader report on overall business inventories next week.

The recent string of upbeat data has raised doubts about whether the Federal Reserve will carry out a third round of bond buying to spur the recovery.