US jobless claims fall to 15-month low

US jobless claims fall to 15-month low
By Alan Rappeport in New York
Copyright The Financial Times Limited 2009
Published: December 25 2009 06:11 | Last updated: December 25 2009 06:11
http://www.ft.com/cms/s/0/bbd9a556-f098-11de-839a-00144feab49a.html


The number US workers claiming jobless benefits fell to the lowest level in more than a year last week in a sign that the labour market is slowly starting to catch up with the rest of the economic recovery.

Separately on Thursday, commerce department figures showed that orders for durable goods ticked up in November as companies started to set the stage for greater capital investment next year.

New jobless claims fell by 28,000 to 452,000, the labour department said on Thursday. That was the lowest level since September 2008 and was better than economists had projected.

The less volatile four-week average of jobless claims has been steadily falling and dropped by another 2,750 to 465,250. Economists argue that jobless claims need to fall to the 400,000-level before the US economy can begin creating jobs.

Continuing benefits claims also fell back, declining by 127,000 to 5.076m. That was the lowest level since February.

Meanwhile, new orders for durable goods rose by 0.2 per cent in November. That was weaker than analysts predicted, with gains blunted by a decline in transportation orders as demand for aircraft plunged.

Excluding orders for transportation equipment, which tend to fluctuate, durable goods orders were up by 2 per cent. Businesses showed greater demand for electronics equipment and computers, which saw orders jump by 3.7 per cent.

“The three-month growth rates of overall durable goods orders and those excluding transportation equipment are further signs of the recovery in manufacturing activity,” said John Ryding and Conrad DeQuadros, economists at RDQ Economics.

Inventories of durable goods declined last month after rising in October. The 0.2 per cent dip was the 10th decline in the last 11 months. The moderating pace of inventory liquidation is a good sign for future economic growth as factories prepare to ramp up production to meet increased demand.