The Labor Department reported this morning that Americans filing for first time unemployment benefits declined in the latest week. Weekly Initial Jobless Claims fell by 5,000 to 305,000 and below the 325,000 expected. The four week moving average, which smoothes out any seasonal abnormalities, dropped 7,000 to 308,000, the lowest level since June of 2007. The sector has been improving, but employers remain jittery ahead of the new healthcare laws and the possibility of a government shutdown.
In a separate government report, the third of three readings on Gross Domestic Product for the second quarter of 2013 came in at 2.5%, inline with estimates. Within the report it showed that consumer spending was unchanged at 1.8% while the inflation component fell for the first time in four years.
Yesterday, the world's largest retailer, Wal-Mart, announced that due to a decline in sales, it will be ordering less merchandise for their shelves. It is said that inventories at Wal-Mart are way above their goals. Consumer Spending is a big part of the U.S. economy and sales at Wal-Mart is a barometer for that spending.
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