NEW YORK (Reuters) - Initial claims for unemployment benefit rose more than expected last week, hitting 382,000 compared with a forecast of 370,000 in a Reuters poll and up from 367,000 the previous week.
Producer prices rose 1.7 percent in August, the largest rise since June 2009 as energy costs jumped.
MICHAEL CAREY, CHIEF ECONOMIST NORTH AMERICA, CREDIT AGRICOLE CORPORATE & INVESTMENTS, NEW YORK
Producer prices: “Higher gasoline prices are a concern because they rob consumers of their purchasing power.”
Jobless claims: “The big picture is that employment growth is very sluggish. We also have some concerns about the manufacturing slowing.”
ANDREW WILKINSON, CHIEF ECONOMIC STRATEGIST, MILLER TABAK, NEW YORK
“The rise of 15,000 in initial weekly unemployment claims to 382,000 was disappointing although simply underscores the subdued nature of the labor market. The latest report simply confirms what the Federal Reserve already knows about the state of employment and will only encourage it to further support the economy through wider use of its balance sheet. The Labor Department noted that several states reported higher claims on account of Hurricane Isaac, but even after adjusting by the 9,000 the department suggests, the data is still showing only glacial improvement.”
WAYNE KAUFMAN, CHIEF MARKET ANALYST AT JOHN THOMAS FINANCIAL IN NEW YORK
“Claims are going the wrong way, a little lackluster and worse than expected. As we near 400,000, that’s really not something we want to see. This could have been impacted by the tropical storm, but even without that, this isn’t what we want to see. I hate to react negatively to one week’s data, but the labor situation in the country is ugly.”
JOSEPH TREVISANI, CHIEF MARKET STRATEGIST, WORLDWIDE MARKETS, WOODCLIFF LAKE, NEW JERSEY
“Initial claims and the four-week moving average are higher, as are revisions. The negative implications of the rising claims numbers over the past two months were realized in the August payroll data. Expect another poor job report in September.”
Americas Economics and Markets Desk; +1-646 223-6300