Initial Jobless Claims in U.S. Unexpectedly Climbed (Update2)
By Timothy R. Homan and Bob Willis
Feb. 4 (
Bloomberg) -- More Americans unexpectedly filed first-time claims for unemployment insurance last week, indicating companies lack confidence the economic recovery will be sustained.
Initial jobless applications increased to 480,000 in the week ended Jan. 30, the most in seven weeks, from 472,000 the prior week, Labor Department figures showed today in Washington. The number of people receiving unemployment insurance was little changed and those receiving extended benefits increased.
An unemployment rate that’s projected to average 10 percent this year will likely weigh on consumer spending, preventing the biggest part of the economy from accelerating. Without additional gains in sales, companies will be forced to keep cutting costs, limiting staff in order to boost profits.
“The pace of improvement has slowed significantly in the last two months,” said Anna Piretti, a senior economist at BNP Paribas in New York. “This points to downside risk for consumption and the rest of the economy.” ..........(more)
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