U.S. jobless claims at 15-year low; consumer spending rises

Yahoo Finance ^ | 04/30/2015 | Lucia Mutikani

[SeekAndFind]

The number of Americans filing new claims for jobless benefits tumbled to a 15-year low last week and consumer spending rose in March, signs the economy was regaining momentum after stumbling badly in the first quarter.

The economic outlook was brightened further by another report on Thursday showing a solid increase in wages in the first quarter, which should keep the Federal Reserve on track to raise interest rates this year.

Initial claims for state unemployment benefits fell 34,000 to a seasonally adjusted 262,000 for the week ended April 25, the lowest reading since April 2000, the Labor Department said.

It was the eighth straight week that claims remained below 300,000, which is usually associated with a strengthening labor market, suggesting March's moderation in job growth was likely an aberration.

Economists polled by Reuters had forecast claims falling to 290,000 last week. The four-week moving average of claims, considered a better measure of labor market trends as it irons out week-to-week volatility, fell 1,250 last week to 283,750.

Separately, the Commerce Department said consumer spending rose 0.4 percent last month as households stepped up purchases of big-ticket items like automobiles.

The increase followed a 0.2 percent gain in February and indicated that consumer spending picked up momentum at the end of the first quarter, which bodes well for consumption in the April-June period.

While that should boost growth in the second quarter, the rebound in economic activity will likely be curbed by an inventory overhang, a strong dollar and cuts in energy sector investment.

[Obadiah]

I wonder what will become of the single-family home in 20-30 years.

Ha, ha. That's what reverse mortgages are all about. People are becoming so destitute that they are selling their only remaining asset back to the bank to have a bit of remaining crumbs to live on. The banks, in turn, will flip that property to a developer for apartments or whatever.

[Steve_Seattle]

Also, a lot of single family homes are in disrepair because people cannot afford major maintenance or even routine maintenance like painting. When they are sold, the cost of rehab is weighed against the cost of tearing them down and rebuilding at a higher density. The result of that equation is usually foreordained if zoning laws allow it, and local governments are more ready than ever before to change zoning laws.

[subterfuge]

Point taken. I’m mainly talking about the 30 to 40 year old people who actually do work, but are struggling just to make ends meet. It’s all they can do to put a roof over their heads and feed themseves, let alone save for retirement. Of course the direction we’re headed “saving for retirement” will be illegal in just a few years. Not kidding.

Thanks president Jug Ears!

[hattend]

U.S. jobless claims at 15-year low; consumer spending rises

Yesterday's headline: GDP growth = 0.2%

So, I call Bullobama on today's news.

[hattend]

In 30 years when the millions of people hit retirement age with ZERO savings there will be carnage in the streets.

They'll all be 70-80 years old with no healthcare (hell, I'll be in the ground). What kind of carnage are you talking about?

[subterfuge]

Well, it looks like you read all the posts so you must have seen where I said I was referring to people in their 30s and 40s. So those people will be 60 to 70. And the only thing they WILL have is health “care” and nothing more. There will be millions upon millions merely subsisting on meager goverment handouts. Look it up. People aren’t saving because they can’t.

And if you don’t think 65ish people can’t do some damage you’re smoking some bad a$$ sh!t.