The number of Americans submitting new claims for unemployment benefits once again recorded a good reading with performance declining last week in tandem with a recovery driven by brisk economic activity and increased vaccinations.
Initial claims for unemployment benefits were 375,000, down 12,000 for the week ended Aug. 7 based on a report released by the Department of Labor on Thursday. This is the third consecutive week of decline.
This reading is down from the previous week which recorded a total claims of only 387,000 after being revised and last week’s reading is also in line with the survey of analysts who targeted a total of claims of only 375,000.
A year ago, the country had recorded nearly 1.5 million new claims a week following the closure of economic sectors. However, with the increase in more widespread vaccinations and the sharp decline in cases of Covid-19 infection has led to an increase in employment.
On the other hand, the level of claims continued to decline to 2.886 million, down 114,000 from the previous week’s revised level. The economy has recorded a rapid recovery especially in the second quarter.
On the other hand, U.S. producer prices rose more than expected. This carries an indication that inflation remains high due to strong demand following the economic recovery. The producer price index for final demand rose 1.0% last month after rising 1.0% in June. In the 12 months to July, the PPI jumped 7.8%.
The US dollar returned strong by 0.03% to 92,950.
