On Thursday, US Labour Department data for weekly jobless claims came forth as a breather for an excruciated US Labour market, as the number of Americans filing for state unemployment benefits dived to a seven-month low for the week that ended on November 7, though the rate of decline appeared to have scaled down substantially, suggesting a likely curb on further improvement amid a wintry chill coupled with a pandemic outbreak at large.
On top of that, analysts had blamed a lack of Government initiative for further fiscal assistance which in effect had been weighing heavily on to a frail US economy.
US weekly jobless claims fall to 709,000; inflation seen muted
Aside from that, other data released on Thursday had also pointed towards a muted inflation outlook with US consumer prices remaining broadly unchanged last month, while Government data had revealed modest gains in the costs of rents and foods, though the gains were largely overshadowed by a cheaper gasoline and healthcare sector.
Meanwhile, addressing to a sheer reluctance lingering among the investors, a Chief economist at MUFG in New York, Chris Rupkey said followed by release of the Labour Department data, “There are not enough jobs and not enough inflation out there to assuage the worries of Fed officials trying to go it alone to engineer this economic recovery as Washington elected officials dither over providing additional fiscal stimulus”.
In tandem, according to US Labour Department data released earlier on Thursday, initial weekly jobless claims fell by 48,000 to a seasonally adjusted 709,000 last week, beating an analysts’ forecast of 735,000 applications last week.
Although jobless claims had telescoped sharply following a trillion-dollar stimulus package passed in the US Congress back in the April this year, though the claims had still been hovering above a prior record of 665,000 applications registered during the peak of Great Financial Depression of 2007-09.