AFP
New data on jobless claims and durable goods orders pointed different trends for the U.S. economy.
The number of workers filing for the first time for unemployment benefits had the biggest drop in almost five months, indicating the labor market continues to show strength.
Jobless claims totaled 209,000 in the week ended Nov. 18, or 24,000 less than in the previous week, the Labor Department said in a statement Wednesday. The number was above the estimate of 226,000 in a Reuters’ survey of economists. The four-week average, which previously was at the highest in two months, fell to 220,000.
A separate report from the Commerce Department showed that orders of goods made to last at least three years fell 5.4% in October, the third drop in four months. The contraction was sharper than the estimate of 3.4% in a Wall Street Journal survey.
Orders of cars, airplanes and defense equipment had the biggest negative impact on the indicator.
The economy is showing reactions to high interest rates, although the Federal Reserve said in the minutes of its last monetary policy meeting that the impacts are “uncertain.”
In the minutes, released Tuesday, the Fed said that the current level of interest rates, the highest in 22 years, is still going to weigh on economic activity, hiring and inflation.
Another Labor Department report, released on Nov. 3, showed that the U.S. economy sharply reduced the pace of job creation in October and the unemployment rate rose to the highest level in almost two years.
The Fed started the tightening cycle in March 2022, when the rate was in the range of 0% to 0.25%. Since then, there have been 11 increases. The next Fed decision is scheduled for Dec. 13.
