LET THE SPIN CONTINUE – AT 8:44 A.M. ET: Jobless claims rose again last week, to an alarming 365,000. But you'd never know this was bad news by the way the usual suspects are reporting it. Bloomberg's headline reads Jobless Claims In U.S. Increased Less Than Forecast Last Week. In other words, what counts is not the reality, but the forecast. From Bloomberg:
The number of Americans filing applications for unemployment benefits rose last week, probably marking the final period in which the annual auto shutdowns affect the figures.
Jobless claims climbed by 8,000 to 365,000 in the week ended July 28, Labor Department figures showed today in Washington. The median forecast of 47 economists surveyed by Bloomberg News called for an increase to 370,000. Starting next week, the data should be clear of any influence from the annual auto plant retooling closures that make it difficult to adjust the data for seasonal variations, a Labor Department spokesman said as the report was released to the press.
Apart from the statistical noise, the job market may take time to heal as a global slowdown and looming U.S. fiscal policy changes in the world’s biggest economy keep employers reluctant to add workers. Unemployment above 8 percent is among reasons Federal Reserve policy makers yesterday said they would take new steps as needed to boost the expansion.
COMMENT: Hey, prosperity is just around the corner. A Volt in every garage and a non-Chick-fil-A chicken in every pot. Just leave it up to the Chicago pols.
There will be major jobs reports out tomorrow morning. More spin indicated.
August 2, 2012