Here we go again… another week, another “unexpected” rise in new jobless claims:
The number of U.S. workers filing new applications for unemployment insurance unexpectedly surged last week, while producer prices increased sharply in January, raising potential hurdles for the economic recovery.
Initial claims for state unemployment benefits increased 31,000 to 473,000, the Labor Department said on Thursday. That compared to market expectations for 430,000.
Another report from the department showed prices paid at the farm and factory gate rose a faster than expected 1.4 percent from December after a 0.4 percent gain in December, as higher gasoline prices and unusually cold temperatures helped boost energy costs.
To be honest I’m more concerned the sharp rise in producer prices than I am about the increase in new unemployment claims. In short, inflation is starting to rear its ugly head; frankly I think we’re head for a dead cat bounce rather than a recovery. What say you?
- Fed Raises Discount Rate Quarter Percentage Point – Wall Street Journal
- U.S. stock futures fall as economic data disappoints – MarketWatch.com
- Jobless Claims in U.S. Rose Last Week to 473,000 – Bloomberg.com
- Leading Economic Index in U.S. Increased 0.3% in January – Bloomberg.com
- Obama ‘Agnostic’ on Deficit Cuts, Won’t Prejudge Tax Increases – Business Week
- Dear Mr. President: Why We Are Not Hiring – C. Edmund Wright, American Thinker