Corvette Forum : Corvette Forums banner

1 - 1 of 1 Posts

31,366 Posts
Discussion Starter #1
New claims for unemployment benefits unexpectedly rose last week, bouncing back above the key 400,000 level, while core producer prices clumbed faster than expected in March, government reports showed on Thursday.

Initial claims for state unemployment benefits rose 27,000 to a seasonally adjusted 412,000, the Labor Department said.

Economists polled by Reuters had forecast claims slipping to 380,000.

The prior weeks figure was revised up to 385,000 from the previously reported 382,000.

The four-week moving average of unemployment claims—a better measure of underlying trends—climbed 5,500 to 395,750.

The rise in claims interrupted a downward trend that had kept them below the 400,000 threshold for four weeks. That level is normally associated with steady job growth. Despite last weeks rise, the four-week average held below the 400,000 mark for a seventh straight week.

A Labor Department official said claims tend to rise the first week of a new quarter.

The number of people still receiving benefits under regular state programs after an initial week of aid fell 58,000 to 3.68 million in the week ended April 2, the lowest level since September 2008.

Economists had expected so-called continuing claims to ease to 3.70 million from a previously reported 3.72 million.

The number of people on emergency unemployment benefits fell 12,245 to 3.55 million in the week ended March 26, the latest week for which data is available. A total of 8.52 million people were claiming unemployment benefits during that period under all programs.

Core Producer Prices Climb

U.S. core producer prices rose slightly faster than expected in March and the increase from a year ago was the largest since August 2009, pointing to a broadening in pipeline inflation pressures.

The Labor Department said on Thursday its seasonally adjusted index for prices paid at the farm and factory gate - excluding volatile food and energy costs—rose 0.3 percent after gaining 0.2 percent in February.

Economists had expected core PPI to rise 0.2 percent in March.

Light trucks prices, which advanced 0.7 percent, accounted for a third of the rise in core PPI last month. The increase in light truck prices was the biggest since July. Passenger vehicle prices increased 0.9 percent, the largest increase since June 2009.

"It looks like the disruption to global autos production stemming from the Japanese disaster will hit autos supply and, consequently could lead to some further steep price increases over the next few months," said Paul Ashworth, chief U.S. economist at Capital economics in Toronto.

In the 12 months to March, the core producer price index rose 1.9 percent, the biggest increase since August 2009, after gaining 1.8 percent in February. Marchs increase was in line with market expectations.

The increase in headline PPI, however, slowed to 0.7 percent after surging 1.6 percent in February.

Economists polled by Reuters had expected PPI to rise 1 percent last month. In the 12 months to March, producer prices increased 5.8 percent, the largest gain in a year, after rising 5.6 percent in February.

Although rising gasoline prices are exerting upward pressure on inflation at the production level, the Federal Reserve largely views this as transitory. Officials have, however, said they would act if necessary to ensure that an inflation psychology does not take root.

Energy prices, which rose 2.6 percent, accounted for nearly 90 percent of the increase in wholesale prices last month.

Energy prices rose 3.3 percent in February.

Gasoline prices rose 5.7 percent after increasing 3.7 percent in February. Food prices fell 0.2 percent, the first decline since August.

The U.S. central bank said in its Beige Book summary of economic conditions on Wednesday that businesses were reporting that higher commodity costs were putting upward pressure on prices.

But with the labor market still weak and wage growth subdued, producers have limited capacity to pass on the higher costs to consumers.
1 - 1 of 1 Posts