A day ahead of the release of the more closely watched monthly jobs report, the Labor Department released a report on Thursday showing first-time claims for U.S. unemployment benefits rose by much more than expected in the week ended July 27th.
The report said initial jobless claims climbed to 249,000, an increase of 14,000 from the previous week’s unrevised level of 235,000. Economists had expected jobless claims to inch up to 236,000.
The Labor Department said the less volatile four-week moving average also crept up to 238,000, an increase of 2,500 from the previous week’s unrevised average of 235,500.
Labor productivity in the U.S. shot up by more than expected in the second quarter, according to a separate report released by the Labor Department on Thursday.
The Labor Department said labor productivity surged by 2.3 percent in the second quarter after rising by a revised 0.4 percent in the first quarter.
Economists had expected labor productivity to jump by 1.7 percent compared to the 0.2 percent uptick that had been reported for the previous quarter.
Meanwhile, the report said unit labor costs climbed by 0.9 percent in the second quarter after soaring by a revised 3.8 percent in the first quarter.
Economists had expected unit labor costs to shoot up by 1.8 percent compared to the 4.0 percent spike that had been reported for the previous quarter.
At 10 am ET, the Institute for Supply Management is scheduled to release its report on manufacturing activity in the month of July. The ISM’s manufacturing PMI is expected to inch up to 48.8 in July from 48.5 in June, but a reading below 50 would still indicate contraction.
The Commerce Department is also due to release its report on construction spending in the month of June at 10 am ET. Construction spending is expected to rise by 0.2 percent in June after edging down by 0.1 percent in May.