US weekly jobless claims edge higher as pandemic restrictions weigh

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US weekly jobless claims edge higher as pandemic restrictions weigh

On Thursday, US Labour Department’s data for weekly jobless claims had sketched out a slandering landscape for a pandemic-battered US economy as a persistent bubble in pandemic cases across the United States had been hobbling business operations, leading to a modest rise in first-time claims for the state unemployment benefits.

Nonetheless, other financial data revealed on Thursday had portrayed a zigzag course for US economy’s path towards an economic recovery from the pandemic-induced slump, as housing market remained utterly resilient against an uptick in pandemic cases with US homebuilding and permits stepping up last month amid a multi-year low mortgage rate.

However, in what had been viewed as a short-term moderation in economic activity over the recent weeks, Govt. data released earlier on Thursday had unfurled that the mid-Atlantic manufacturing activities had calmed down earlier this month, largely contradicting US manufacturing output data released earlier this week which had shown that the US factory output rose by 0.8 per cent last month with a sharp spike in orders for US-borne core capital goods.

US weekly jobless claims edge higher amid stiffer pandemic restriction

Besides, according to the US Labour Department data released earlier in the day, the number of Americans filing for state unemployment benefits for the first time in their lives rose by 23,000 to a seasonally adjusted 885,000 during the week that ended on December 12, remarking a second straight weekly rise in the applications for initial jobless claims, nonetheless, an analysts’ poll had forecasted about 800,000 applications for first-time claims.

Meanwhile, referring to a clattering catch-22 that had been hindering economic recoveries, caught between a record-low interest rate alongside a sharp rise in lay-offs in small-scale businesses, in part due to a stiffening of pandemic restrictions, a Chief Economist at MUFG in New York, Chris Rupkey said following the Labour Department announcement, “The coronavirus pandemic has split the economy in two where the winners are interest-rate sensitive sectors like housing and the stock market, while the losers employed in the leisure and hospitality industries are falling further and further behind”.