Initial Jobless Claims Fall by Most in Almost 3 Years, Leading Indicators Rise More Than Expectations

- Initial Jobless Claims for last week fell to 303K versus estimates of 325K and 337K the prior week.
- Continuing Claims fell to 2577K versus estimates of 2589K and 2618K prior.
- Leading Indicators for June rose .9% versus estimates of a .5% rise and an upwardly revised 0.0% reading in May.

BOTTOM LINE: The number of US workers filing first-time applications for state jobless benefits fell to 303,000 last week, the lowest level since April, as automakers completed factory retooling more quickly than government statisticians expected, Bloomberg reported. The decline was the largest since December 2002. The four-week moving-average of claims fell to 318,000 from 321,250. The insured employment rate, which tracks the US unemployment rate, fell to 2.0% from 2.1%.

The Leading Indicators report shows the first major revision in how the index is compiled since 1996. Higher consumer confidence, building permits and stock prices spurred gains in the index.