The Labor Department says new claims for unemployment insurance rose by 19,000 to a seasonally adjusted 479,000. Analysts had expected a small drop. Claims have risen twice in the past three weeks. Meanwhile, another economic report shows only modest gains in retail sales in July.
Some of the increase stemmed from difficulties the government has in adjusting for seasonal factors. The Labor Department expected a large decline in claims last week as many auto companies usually shut their plants temporarily in early July.
Claims were expected to rise during the shutdown and then fall.
But this year General Motors and other manufacturers skipped the shutdowns, so claims didn't fall last week as much as expected.
RETAIL SALES
Early reports from retailers show modest revenue gains in July. Hot weather and deep discounts drove Americans into malls for summer bargains, but shoppers remained choosy.
The sluggish spending raises worries about the health of the back-to-school season as Americans step up saving amid a stalling economic recovery.
As stores report their results Thursday, several chains had solid increases. Those include Costco Wholesale Corp. and Limited Brands Inc., but those figures are being compared with dismal spending in July 2009.
Teen merchants were among the hardest hit, with The Buckle Inc. and The Wet Seal Inc. suffering declines.
The figures are based on revenue at stores opened at least a year and are considered a key indicator of a retailers' health.
http://accesswdun.com/article/2010/8/231268