This mornings economic data reveals a very disturbing trend of an economy that is continuing to deteriorate.
Jobless claims:
INITIAL JOBLESS CLAIMS: 500K V 478K Expected (highest reading since Nov 2009); CONTINUING CLAIMS: 4.478M V 4.50ME- Prior initial claims revised higher from 484K to 488K
- Prior continuing claims revised higher from 4.452M to 4.491M- 4-week average for claims at 483K v 474K prior (highest since Dec 5th 2009)
The only reason the continuing claims number is not moving up with the weekly initial claims is due to people falling off the rolls. When unemployment is low the continuing claims is a fairly accurate metric, however when unemployment is as high and as long as we have currently it becomes a broken gauge.
Philadelphia Fed Index:
AUGUST PHILADELPHIA FED: -7.7 V 7.0E; First negative reading since July 2009- Prices Paid: 11.8 v 13.1 prior
- New Orders: -7.1 v -4.3 prior
- Employment: -2.7 v 4.0 prior
- Inventories: -11.6 v 4.5 prior
Nothing good from the Philadelphia Fed data. Of particular note is the employment sub index which is now officially contracting.
More on this topic
(What's this?)
Why is the Journal Mystified that Some Employers Are Having Trouble Finding Workers?
(naked capitalism, 8/9/10)
JOBLESS CLAIMS IMPROVE, BUT POINT TO WEAK AUGUST EMPLOYMENT REPORT
(THE PRAGMATIC CAPITALIST, 8/26/10)
Jobless Claims Rise to 472,000
(Expected Returns, 7/1/10)
