Last Update: 03-Jul-13 08:59 ET
Initial Claims Trends Remain Flat
The initial claims level decreased from an upwardly revised 348,000 (from 346,000) for the week ending June 15 to 343,000 for the week ending June 29. The Briefing.com consensus pegged the initial claims level at 348,000. For the past several weeks, the initial claims level has moved in a slight sawtooth pattern, but overall, trends have been relatively flat. Labor conditions have not materially changed over this time. In the upcoming weeks, we expect heavy volatility in the claims data from seasonal adjustment biases. Normally, motor vehicle manufacturers shut down their plants during the summer for retooling purposes, which essentially lays off thousands of workers.
This year, many domestic manufacturers have announced that plants will remain open in order to satisfy the increase in auto demand. The seasonal adjustments, which take into account the layoffs from the retooling, will likely not be able to compensate for this new production schedule. The continuing claims level fell from an upwardly revised 2.987 mln (from 2.965 mln) for the week ending June 8 to 2.933 mln for the week ending June 15. The consensus expected the continuing claims level to fall to 2.955 mln.
The initial claims level decreased from an upwardly revised 348,000 (from 346,000) for the week ending June 15 to 343,000 for the week ending June