New data from the Labor Department on Thursday showed that applications for unemployment benefits in the U.S. rose more sharply than economists had anticipated during the week ending August 16.
Initial claims increased to 235,000, up by 11,000 compared with the prior week’s unchanged figure of 224,000. Analysts surveyed ahead of the release had projected only a slight uptick to around 225,000.
The report also noted that the four-week moving average, which helps smooth out short-term volatility, rose to 226,250. That represents a gain of 4,500 from the previous week’s unrevised average of 221,750.
In a separate release, the Federal Reserve Bank of Philadelphia reported that regional manufacturing conditions weakened in August. Its gauge of current general activity dropped steeply, turning negative at -0.3 after registering 15.9 in July. A reading below zero signals contraction. Economists had been looking for a more modest slowdown, with the index expected to hold at a positive 7.0.
Despite the weaker current conditions, firms in the Philadelphia Fed’s survey remained optimistic about the future. The index measuring expectations for overall activity six months ahead improved to 25.0 in August from 21.5 in July, suggesting continued confidence in growth prospects.
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