For the week ending May 1o the Labor Department said today the claims for unemployment benefits rose 6000 to 371,000 while the four-week average fell 1000 to 365,750. Meanwhile more clues upon the soft labor market continuous claims rose to their highest since March 2004 rising 28 thousands to 3.06 million while their fore-week average also increased by 15,250 now at 3.02 million the highest as well since April 2004.
As long as the labor market continues to be weak, that provides the insight for low spending strength in the economy, which is the last straw all senses are locked upon to salvage the economy, especially as they account for 3/4 of the aggregate economy. If Americans continue to lose their jobs then basically the stimulus checks that are expected to boost spending capabilities are to replace the monthly pay and for that the major assumed effect to be seen is then week.
The US economy accounts much on spending and that is not in its favor at the moment. The manufacturing at the other hand continues to suggest on going weakness according to the Empire State Manufacturing index, with markets expecting a flat reading that posted was a drop of 3.2 after 0.6 in April.
The activity in New York has weekend with business conditions contraction, new orders have fallen; shipments dropped strongly which also puts a read light on exports though still its expanding and in positive territories at 4.55 after 17.49, while employment slightly improved.
Thought the positive insight was that despite the gain in raw material prices manufactures still couldn