USA Update

The pace and resilience of the US economic recovery has been called into question with the release of weaker than expected economic figures. There has been an increase in unemployment benefit claims for the first time in five weeks. Maybe consumer confidence is taking a battering again in the USA or is this just a blip?

Keep in mind that the labour market for all economies is a closely watched macroeconomic indicator. Poor figures on unemployment and new jobs created is a sign that the recovery in demand remains fragile. Or perhaps that the USA may be experiencing a jobless recovery - with businesses reluctant to take on extra workers for the moment.

According to the Daily Telegraph (UK)

“In the US there was a surprise 25,000 increase in jobless claims to 471,000 in the week ending May 15. The deterioration in the employment picture, coming hard on the heels of Wednesday’s drop in inflation, underlined worries that the US is exposed to a possible global double-dip recession”

Read the article here