Economists were pleasantly surprised last week when July’s data showed an improvement in employment and a significant reduction in the number of Americans filing applications for unemployment benefits. Observers hope this is a sign that the economy will continue to grow as the labor market grows.
According to Labor Department statistics the number of jobless claims fell to 361,000, a reduction of 6,000 claims during the week which ended on August 4th. The expected number which was predicted by a group of 43 economists for that week had been an increase to 370,000. Other data showed that there was a lowering of consumer confidence in July, reaching a two-year low, but the price of homes grew more than they have since 2006.
“There’s a gradual improvement on the layoffs side,” said economist Peter Newland of Barclays Plc in New York.
Newland correctly projected that unemployment claims would drop to 360,000. Newland added that there will be
“a bit of a rebound in the second half. It’s not going to be spectacular, but it should be better than the first half.”
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