Fewer Firings a Sign U.S. to Regain Growth Momentum: Economy

By Michelle Jamrisko Mar 27, 2014 4:45 PM ET

Fewer Americans than forecast applied for unemployment insurance payments last week, pointing to an improving labor market that will help the economy regain momentum following the harsh winter.

Jobless claims decreased by 10,000 to 311,000 in the period ended March 22, the fewest since late November, Labor Department data showed today in Washington. Another report showed the economy grew more rapidly in the fourth quarter than previously estimated as consumer spending rose by the most in three years.

A slower pace of firings, a harbinger of bigger job gains, shows companies are confident sales will rebound after heavy snowfall and freezing temperatures kept people away from malls and auto dealers. Retailers such as Macy’s Inc. (M) are among companies waiting for the weather to improve to get a clearer picture of the economy.

“Activity in the second quarter is going to represent something of a rebound from the first quarter,” said Tom Simons, an economist at Jefferies LLC in New York, who projected claims would drop. “We’ve seen enough good numbers recently to say that it is a sign of fundamental improvement.”

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http://www.bloomberg.com/news/2014-03-27/jobless-claims-in-u-s-unexpectedly-fell-last-week-to-311-000.html