Thursday, August 13, 2009

Jobless Claims Rise to 558,000 in the United States

"Better-than-anticipated reports on manufacturing, housing and employment indicate the deepest job cuts may have passed. At the same time, while analysts surveyed by Bloomberg News say the government’s stimulus spending will spur economic growth as of this quarter, they predict it won’t stop the jobless rate from reaching 10 percent and restraining consumer spending.

“The job market is no longer skidding out of control,” Carl Riccadonna, a senior economist at Deutsche Bank Securities Inc. in New York, said before the report. Nonetheless, he said, “while the stimulus is helping the economy gain traction, we’re not going to see a massive ramp-up in hiring because of it.”"

Source: Bloomberg

Although, we are seeing an improvement in the global economy because of stabilization. We are not seeing massive ramp up in growth as the market dictates. For employment to continue to improve manufacturing and consumer spending in the United States has to improve. Consumer spending still remain in depressed levels as there continues to be weak demand in high end products. I would continue to be cautious till more evidence from the government stimulus creates "real" jobs that provide evidence for the economy.

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