Fears that the US recovery is losing steam were reinforced on Thursday, as new data on the health of the labour market, as well as the manufacturing and housing sectors, disappointed economists.
The number of people seeking jobless claims in the US rose unexpectedly last week by 13,000 to 472,000, while the less volatile four-week moving average also rose slightly to 466,500, offering further evidence that the improvements in the labour market seen earlier this year may be slowing.
In March and April, the recovery in labour market conditions appeared to be gaining traction, amid solid job creation in the private sector. But in May, private employers seemed to put hiring plans on hold, bringing only 41,000 new positions onto their payrolls.
David Semmens, US economist at Standard Chartered Bank, said that today’s jobless claims figures were “a timely reminder that firings in the US remain elevated and appetite from employers for hirings remains anemic”.
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