The number of Americans filing for the first time for unemployment benefits has shrunk, which is an unexpected thing last week but has risen above the level recorded 9 months ago.
Although the increase in Covid-19 infection has led to more business restrictions being imposed but the numbers have shown a decline. A report released by the Department of Labor today showed that the total unemployment claims last week recorded a total reading of 787,000 claims. This reading is less than the target set by analysts at 833,000. Last week's reading also fell from the previous week's reading of 806,000.
Although unemployment claims fell from the highest reading of 6.867 million in March, the number recorded remained at a peak reading of 665,000 recorded during the financial crisis 2007-2009. This unemployment claims report gives a picture of the U.S. economic situation. At the same time, the report also showed consumer confidence declined to a four-month low in December and a decline in consumer spending and revenue last month. Thus making the U.S. economic situation increasingly worrying.
The recovery from the economic downturn due to the Covid-19 pandemic is slowing down due to the delay coming from Congress to offer an additional stimulus package amounting to $ 900 billion even though it is considered a bit slow by economists. Donald Trump, however, rejected the negotiated agreement by demanding higher payments to individuals.
The United States is currently hit by a new wave of Covid-19 cases, with more than 20 million people infected and nearly 351,000 dead, according to Reuters official data. The U.S. administration has re-imposed restrictions on several sectors of the economy as a measure to curb the spread of the pandemic.
The US dollar index, which measures the greenback against the major, depreciated by 0.05% at the exchange rate of 89,605.
