More Americans Than Anticipated File Jobless Claims as Companies Cut Costs

More Americans Than Anticipated File Jobless Claims (Update1)
By Bob Willis


Sept. 3 (Bloomberg) -- More Americans than anticipated filed jobless-benefit claims last week, indicating companies remain focused on cutting expenses as the economy emerges from its worst recession since the 1930s.

Applications fell by 4,000 to 570,000 in the week ended Aug. 29, exceeding the 564,000 median forecast of economists surveyed by Bloomberg News, figures from the Labor Department showed today in Washington. The total number of people collecting unemployment insurance climbed.

The firings are one reason economists project consumer spending, which accounts for 70 percent of the economy, will be slow to strengthen. Analysts surveyed by Bloomberg forecast a Labor Department report tomorrow will show August payrolls fell by 230,000, the smallest decrease in a year.

“We’re not making much progress in terms of the layoff picture,” said Jonathan Basile, an economist at Credit Suisse Holdings USA Inc., which correctly forecast the first-time filings figure. “These levels of initial claims are still consistent with declines in payrolls.”

Stock-index futures, boosted earlier in the day by the biggest rally in Chinese shares in six months, remained higher after today’s report. Contracts on the Standard & Poor’s 500 Index were up 0.6 percent at 999.80 at 8:54 a.m. in New York. Treasuries stayed lower, with benchmark 10-year notes yielding 3.34 percent, from 3.31 percent late yesterday. ..............(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601087&sid=aqgweyLi6lYA