WASHINGTON - New claims for unemployment benefits dropped sharply last week, but they have yet to reach levels that most economists say would signal strong job creation. Meanwhile, retailers report sluggish sales last month.
The Labor Department says that requests for jobless aid dropped by 21,000 to a seasonally adjusted 454,000. Economists polled by Thomson Reuters predicted a smaller drop.
The decline takes claims to their lowest level since early May, erasing the increases of the last two months. But claims have fluctuated in recent weeks, establishing no clear trend. They have remained stuck near 450,000 all year, after dropping steadily last year from a peak of 651,000 in March 2009.
The tally of people continuing to claim benefits plunged by 224,000 to 4.4 million.
RETAIL SALES
Early reports from retailers show sluggish June sales and shoppers buying mostly deeply discounted clothing amid escalating job worries.
June's lackluster revenue performance is raising concerns about back-to-school shopping and the health of the economic recovery.
As merchants report their results Thursday, Costco Wholesale Corp. posted a solid revenue gain, but it was fueled by its international business. Many teen merchants including The Buckle Inc., Hot Topic Inc. and The Wet Seal Inc. are reporting decreases in revenue.
Limited Brands Inc., which owns Victoria's Secret and Bath & Body Works, is among the bright spots.
The figures are based on revenue at stores open at least a year and are a key indicator of retailers' health.
Thursday
October 10th, 2024
4:19AM
