Jobless Claims

Weekly unemployment claims hit a four-year low, suggesting further strengthening in the labor market, while producer prices, boosted by energy costs, rose by their largest margin in five months in February.


Initial claims for state unemployment benefits dropped 14,000 to a seasonally adjusted 351,000, the Labor Department said. That took claims back to a four-year low reached in February.

The prior week's figure was revised up to 365,000 from the previously reported 362,000. Economists polled by Reuters had forecast claims falling to 356,000 last week.

The four-week moving average for new claims, considered a better measure of labor market trends, was unchanged at 355,750.

First-time applications for jobless benefits have been tucked in a tight range since mid-February, a hopeful sign for the labor market, which has enjoyed three straight months of employment gains above 200,000.

The jobless rate held at a three-year low of 8.3 percent in February.

While the Federal Reserve on Tuesday acknowledged the recent improvement in the labor market, it remained concerned with the still-high unemployment rate.

The U.S. central bank said it expected the jobless rate, which has declined 0.8 percentage point since August, to "gradually'' decline.

A Labor Department official said there was nothing unusual in the state-level data and that no states had been estimated.


The number of people still receiving benefits under regular state programs after an initial week of aid declined 81,000 to 3.34 million in the week ended March 3 — the lowest level since August 2008.

Despite the improving labor market picture, long-term unemployment remains a huge problem and about 43 percent of the 12.8 million out of work Americans in February had been jobless for more than six months.

The number of Americans on emergency unemployment benefits fell 53,415 to 2.88 million in the week ended Feb. 25, the latest week for which data is available.

A total of 7.42 million people were claiming unemployment benefits during that period under all programs, up 36,392 from the prior week.

Producer Prices Rise 0.4 Percent

US producer prices recorded their biggest gain in five months in February as the cost of energy spiked, a government report showed on Thursday, but underlying inflation pressures were contained.

The Labor Department said its seasonally adjusted producer price index increased 0.4 percent last month, quickening from January's 0.1 percent gain.

Economists polled by Reuters had expected prices at farms, factories and refineries to rise 0.5 percent.

Wholesale prices excluding volatile food and energy costs rose 0.2 percent, moderating from January's 0.4 percent increase. While that was in line with economists' expectations, it was the third consecutive month of increases in core PPI.

The Federal Reserve said on Tuesday the recent steep run-up in oil and gasoline prices would push inflation up only temporarily.

Overall produces prices were lifted by a 1.3 percent increase in energy prices after a 0.5 percent drop in January.

Food prices dipped 0.1 percent after falling 0.3 percent the prior month.

In the 12 months to February, producer prices increased 3.3 percent, the smallest increase since August 2010, after advancing 4.1 percent in January.

Gasoline prices rose 4.3 percent, the largest gain in five months, after gaining 2.0 percent in February.

Outside food and energy, producer prices were pushed up by pharmaceuticals, which accounted for a third of the increase in core PPI. A rise in prices for civilian aircraft also contributed.

Passenger car prices edged up 0.1 percent after falling 0.8 percent the prior month. Light motor trucks prices fell 0.4 percent after a 0.9 percent rise the prior month.

In the 12 months to February, core producer prices increased 3.0 percent after rising by the same margin the previous month.

Also, the New York Federal Reserve Bank said on Thursday its "Empire State" manufacturing activity index rose in March to 20.21 from 19.53 in February.

Economists in a Reuters survey expected a March reading of 17.50


More @ http://www.cnbc.com/id/46744823