Jobless Claims Exceed Estimates, Philly Fed Index Declines, Housing Starts And Permits Fall Sharply: Thursday's Economic Digest

Benzinga ^ | June 20, 2024 | Piero Cingari

[george76]

Weekly jobless claims rose slightly to 238,000, above the 235,000 forecast.

May housing starts dropped 5.5% to an annual rate of 1.27 million, below expectations. Building permits fell 3.8%, the lowest in four years.

...

Economic data released Thursday morning revealed slightly higher-than-expected weekly unemployment claims, sharp contractions in housing starts and building permits, and a drop in a business outlook survey within the Philadelphia Federal Reserve District.

Thursday’s Economic Releases: Key Highlights..

The number of people filing for jobless claims in the U.S. fell by 5,000 to 238,000 in the week ending June 15, slightly exceeding market expectations of 235,000 as tracked by Econoday.

The four-week moving average for initial claims, which smooths out week-to-week volatility, increased from 227,250 to 232,750, marking the highest level since September 2023.

In May 2024, housing starts saw a significant decline, dropping 5.5% month-over-month to an annualized rate of 1.27 million. This was a decrease from a revised 1.352 million in April and fell short of the 1.37 million forecast. Single-family housing starts decreased by 5.2% to 982,000, while starts for buildings with five or more units were at 278,000.

Building permits also dropped by 3.8% to a seasonally adjusted annual rate of 1.386 million in May 2024, down from 1.44 million in April, the lowest level since June 2020 and below the expected 1.45 million.

The Philadelphia Federal Reserve's general activity index fell by 3 points to 1.3 in June, the lowest since January 2024 and below the forecast of 5.2. The current shipments index decreased by 6 points to -7.2, its lowest since December. The new orders index, while still negative, improved from -7.9 in May to -2.2 in June.

The employment index rose but remained negative for the eight straight month, indicating a continued overall decline in employment levels.

Regarding prices, both price indexes suggested ongoing overall price increases. The prices paid index rose 4 points to 22.5, while the current prices received index soared 7 points to 13.7.

Most future activity indicators stayed positive but pointed to less widespread expectations for growth over the next six months.

Market Reactions..

Treasury yields witnessed a slight uptick following the releases, with the 10-year yield rising from 4.23% to 4.26%.

The rate-sensitive 2-year yield, meanwhile, held steady at 4.73%.

[Diana in Wisconsin]

Wait, WHUT? Brandon said he’s going to coast back into the _residency due to his excellent economy!

What gives? ;)

[mykroar]

In the week ending June 15, the advance figure for seasonally adjusted initial claims was 238,000, a decrease of 5,000 from the previous week's revised level. The previous week's level was revised up by 1,000 from 242,000 to 243,000. The 4-week moving average was 232,750, an increase of 5,500 from the previous week's revised average. The previous week's average was revised up by 250 from 227,000 to 227,250. The advance seasonally adjusted insured unemployment rate was 1.2 percent for the week ending June 8, unchanged from the previous week's unrevised rate. The advance number for seasonally adjusted insured unemployment during the week ending June 8 was 1,828,000, an increase of 15,000 from the previous week's revised level. The previous week's level was revised down by 7,000 from 1,820,000 to 1,813,000. The 4-week moving average was 1,805,500, an increase of 10,250 from the previous week's revised average. The previous week's average was revised down by 1,500 from 1,796,750 to 1,795,250.

[Diana in Wisconsin]

They’re building like CRAZY here in the Midwest.

Granted, most of the homes and apartments are still sitting empty...who can afford a mortgage? Who can afford $1,500.00/month for rent?

Soon to be filled with illegals and/or the homeless.

I wouldn’t be building SQUAT these days if I were a Contractor, unless I had my money in hand before the fist hammer swung.

[george76]

May 2024, native-born workers lost 463k jobs while foreign-born gained 414k jobs...

https://freerepublic.com/focus/f-bloggers/4242836/posts

[Tell It Right]

More fodder for the Fed Reserve to keep rates low (and perhaps expand their balance sheet) to boost the economy —> more inflation.

[Diana in Wisconsin]

Awfully glad to be retired these days. The days of being a Wage Slave are OVER! :)

[george76]

Glad that you are retired .

[Diana in Wisconsin]

Retired in 2016, at age 56. Debt free; Dave Ramsey is my HERO! :)