WASHINGTON, Oct 5 (Reuters) – The number of Americans filing new claims for unemployment benefits rose moderately last week, while layoffs declined in September, pointing to still-tight labor market conditions at the end of the third quarter.
The economy’s prospects during the last quarter were bolstered by other data on Thursday showing the trade deficit shrinking to its smallest in nearly three years in August, with exports of capital goods hitting a record high. The economy has so far weathered hefty interest rate increases from the Federal Reserve to cool demand. That resilience raises the risk of the U.S. central bank hiking rates again by year end.
“Demand in the economy continues to strengthen which can only serve to worry Fed officials even more, and puts the progress in bringing inflation down in jeopardy,” said Christopher Rupkey, chief economist at FWDBONDS in New York.
Initial claims for state unemployment benefits increased 2,000 to a seasonally adjusted 207,000 for the week ended Sept. 30, the Labor Department said. Economists polled by Reuters had forecast 210,000 claims for the latest week.
For much of September, claims hovered in the lower end of their 194,000-265,000 band for this year.
Employers are generally reluctant to let go of their workers following difficulties finding labor in the aftermath of the COVID-19…
