US economy continues to surge ahead

Chris Papadopoullos
Follow Chris
THE NUMBER of Americans filing new claims for unemployment benefit increased less than anticipated last week as the US labour market looks to be tightening.

Initial claims for unemployment benefit rose 12,000 to 293,000 for the week ending 20 September, according to figures released yesterday by the US Department of Labour.

The US central bank, the Federal Reserve, has payed a more attention than usual to unemployment figures in recent times. Their aim is to try to figure out when unemployment will be low enough for inflation to rise so they know when inflation will start to pick up.

Although not conclusive, the figures continue the trend of an improving labour market.

Orders for durable goods fell by 18.2 per cent in August following a 22.5 percent jump in July, but this was due a one-off civilian aircraft order in July. Excluding the volatile trans­port figures gives an increase of 0.5 per cent.

The dollar continued to strengthen as signs that the economy was growing robustly increased the likelihood of an early US rate hike, expected by mid-2015.

Related articles