Experts are calling the latest downtrend in jobless claims one more sign we are headed for economic recovery
In what seems to be a positive trend, the jobless claims report released today shows the fewest unemployment claims in over two years from last week’s filings. Although experts feel optimistic, many agree that we are not out of the woods yet with unemployment rates holding near a 26 year high. American’s surveyed by the University of Michigan have low expectations of improvements any time soon.
In the past, both initial claims as well as ongoing or continued claims are solid leading indicators of where the unemployment rate is headed. They also provide an overall view of the health of the economy.
Coupled with the jobless rates declining, October marked the fifth straight month of increased spending by Americans. Purchases by households was up 0.4 percent for the month. This after September saw a 0.3 percent boost that was bigger the Commerce Department estimates called for.
The reports caused stocks to rally, strengthened by consumer sentiment increasing by better than forecast amounts. The outlook for holiday spending at national retailers such as Wal-Mart Stores Inc. caused a jump in that sector in conjunction with the overall market.
Economists are seeing this as signs of an actual recovery starting to take hold. Especially given the momentum heading into the holiday season.
