US Economic Data Mixed: Jobless Claims Drop While Manufacturing and Housing Weaken

The latest report on the US economy shows a combination of negative trends. While there was a decrease in claims, the manufacturing and housing sectors experienced weakening conditions.

The current state of the US economy presents messages with markets weighing the risks of growth and inflation.

The recent economic data, in the United States presents a picture; while there has been a decrease in jobless claims pointing towards a robust labor market situation; the indicators from the manufacturing and housing sectors indicate a potential decline, in economic activity.

In April the Philadelphia Feds Manufacturing Business Outlook Survey hit a point at -26.4 which’s its lowest, in almost two years, with new orders dropping significantly to -34.2 and companies cutting back on work hours However despite these decreases input and selling prices went up indicating enduring inflationary pressures

The pace of home construction is decreasing well with housing starts, in March dropping by 11.4%.

In the job market sector this week that ended on April 12th there was a decrease of 9k, in unemployment claims to 215k while the average over four weeks remains at 220,750. There was an increase in claims, to nearly 1.885 Million which maintained the insured unemployment rate at 1.2%.

There is growing speculation, about what the Federal Reserve will do due to the results observed recently. Critics are particularly concerned about the impact of slowing growth even though inflation has remained steady. If interest rates are not lowered it could pose challenges, for the stock market.