Data Puts Second Quarter Rebound in Doubt
The number of Americans filing new unemployment benefit claims rose for the third straight week, Labor Department figures released today show. More bad news came from the Commerce Department, which reported that new home sales fell 11.4% in March to a seasonally adjusted annual rate of 481K homes. Finally, the financial data firm Markit said today that factor activity slowed earlier this month, although it remained at an optimistic threshold.
Reports like these undermine hopes that the economy will make up for a sluggish first quarter that many analysts attributed to a brutal confluence of harsh winter weather, a strong dollar and the collapse of oil prices, not to mention West Coast labor woes.
Still, the larger picture remains buoyant. While new home sales faltered, they make up just 8.5% of the market. It was reported yesterday that existing home sales reached an 18-month high in March. And while the jobless claim numbers were disheartening, the 295K claims filed fell just short of the 300K threshold widely considered indicative of a healthy labor market. [Reuters]
