Thursday, September 10, 2009

Is it a recovery yet? (Weekly report)

Linda Duessel, a market strategist at Federated Investors in Pittsburgh, said on Aug. 20 at the release of the weekly initial claims for state unemployment insurance benefits:

"I think that we're hoping for the numbers to stay below 600,000, and not until we get below 500,000 can we be more certain that there is an economic recovery." (Reuters)

We will take her definition of a recovery and watch it on this blog every week going forward.

IT IS NOT A RECOVERY YET.

"The Labor Department said Thursday that initial claims for unemployment insurance fell to a seasonally adjusted 550,000 from an upwardly revised 576,000 in the previous week. Analysts expected claims to drop to 560,000, according to Thomson Reuters. ...

" ... the unemployment claims remain significantly above levels associated with a healthy economy and indicate that jobs remain scarce. Weekly initial claims are generally at 325,000 or below in a growing economy." (The Associated Press)

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