US Weekly Jobless Claims Drop by 15,000; Manufacturing PMI in Focus
The U.S. Department of Labor reported that initial unemployment claims dropped by 15,000 to 227,000 for the week ending October 19, a sign
The U.S. Department of Labor reported that initial unemployment claims dropped by 15,000 to 227,000 for the week ending October 19, a sign of stability in the labor market.
This decline suggests fewer layoffs, and the four-week moving average, which smooths out volatility, also saw a modest decrease of 2,000, bringing it to 238,500. Meanwhile, insured unemployment rose slightly, with 28,000 more people claiming benefits, pushing the total to 1,897,000—the highest since November 2021.
US jobless claims back down to pre hurricane levels according to government data:
Initial claims decreased by 15,000 to 227,000 in the week ended Oct. 19. The median forecast in a Bloomberg survey of economists called for 242,000 applications.
— Special Situations 🌐 Research Newsletter (Jay) (@SpecialSitsNews) October 24, 2024
Insured Unemployment Rate Sees Minor Increase
The insured unemployment rate, which tracks ongoing claims, inched up to 1.3% for the week ending October 12. This reflects a minor increase of 0.1 percentage points from the previous week, suggesting a slight rise in people continuing to claim benefits. However, the overall trend indicates that the job market remains resilient, despite slight fluctuations in insured employment numbers.
Key Economic Data to Watch: PMI and Home Sales
Looking ahead, market participants are keenly awaiting two key economic reports. The Flash Manufacturing PMI, set for release today, is expected to come in at 47.5, slightly above the previous reading of 47.3, but still signaling contraction. Meanwhile, the Flash Services PMI is forecasted at 55.0, reflecting steady growth in the service sector. Additionally, New Home Sales data is anticipated, with an expected rise to 719,000 units from 716,000, indicating continued strength in the housing market.
QT NEWS: US Initial Weekly #Jobless Claims: -15,000 at 227,000 in week ending Oct 19, expected +4,000 at 245,000
US Continuing Weekly Jobless Claims: +28,000 at 1.897 mln; last week's continuing claims 1.867 mln
— QT Info Systems (@QTinfo) October 24, 2024
Key Insights:
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Initial jobless claims fell by 15,000, reflecting a stable labor market.
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The insured unemployment rate rose to 1.3%, signaling a slight uptick in ongoing claims.
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Markets now focus on the Flash Manufacturing PMI, Services PMI, and New Home Sales figures.
In conclusion, while the labor market shows stability, investors will closely monitor upcoming economic data to gauge the broader U.S. economic outlook.
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