Positive Signs for US Economy: Jobless Claims Drop and Core Capital Goods Orders Increase
The number of Americans filing new claims for unemployment benefits fell for a second consecutive week, indicating a tight labor market despite the Federal Reserve's interest rate hikes. Economists had anticipated a downturn in the labor market, but it has remained strong, with employers holding onto workers. Additionally, new orders for key U.S.-manufactured capital goods saw a modest rise in July, suggesting continued growth in business spending on equipment. The combination of a resilient job market and a slowdown in inflation has led economists to revise their expectations for GDP growth.