Initial Unemployment Claims Remain Elevated

After last week's spike higher in unemployment claims to 337k, a six month high, this week we saw only half the retracement that was anticipated by the market. Claims fell back to 331k (consensus 320k). The four week moving average has now moved up to 325k from only 310k three weeks ago. Continuing claims rose +.3% to 2.53 million.

This data will encourage thoughts that the slowing economy is beginning to impact the labor markets, and that last week's rise was not due solely to the Columbus Day holiday.