Market expectations for weekly initial unemployment claims (from Econoday) were 208 K to 216 K (consensus 214,000), and the Department of Labor reported 216,000 new claims. The more important (because of the volatility in the weekly reported claims and seasonality errors in adjusting the data) 4 week moving average moved from 219,000 (reported last week as 219,250) to 218,750. The rolling averages generally have been equal to or under 300,000 since August 2014.
Analyst Opinion of Initial Unemployment Claims
This marks 222 consecutive weeks of initial claims below 300,000, the longest streak since 1970. The general trend of the 4-week rolling average is a slowing rate of improvement year-over-year which history suggests a slowing economy.
It should be pointed out that Econintersect watches the year-over-year change on the 4-week moving average. There is always some seasonality which migrates into the seasonally adjusted data, and year-over-year comparisons help remove some seasonality. The four-week rolling average of initial claims is 0.1 % higher (lower than the 0.7 % higher for last week) than they were in this same week a year ago.
Claim levels are at 40-year lows (with the normal range around 350,000 weekly initial unemployment claims of levels seen historically during times of economic expansion – see chart below).
From the Department of Labor:
In the week ending July 13, the advance figure for seasonally adjusted initial claims was 216,000, an increase of 8,000 from the previous week’s revised level. The previous week’s level was revised down by 1,000 from 209,000 to 208,000. The 4-week moving average was 218,750, a decrease of 250 from the previous week’s revised average. The previous week’s average was revised down by 250 from 219,250 to 219,000.
The advance seasonally adjusted insured unemployment rate was 1.2 percent for the week ending July 6, unchanged from the previous week’s unrevised rate. The advance number for seasonally adjusted insured unemployment during the week ending July 6 was 1,686,000, a decrease of 42,000 from the previous week’s revised level. The previous week’s level was revised up 5,000 from 1,723,000 to 1,728,000. The 4-week moving average was 1,701,000, an increase of 5,000 from the previous week’s revised average. The previous week’s average was revised up by 1,250 from 1,694,750 to 1,696,000.
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