- Continuing Claims fell to 2490K versus estimates of 2495K and 2544K prior.
- Wholesale Inventories for December fell .5% versus estimates of a .5% gain and a 1.1% increase in November.
BOTTOM LINE: The number of Americans filing first-time claims for state unemployment benefits stayed close to the average for the past year, reflecting a healthy labor market, Bloomberg said. The four-week average of claims rose to 308,250 from 305,000 the prior week. A robust labor market and wages outpacing inflation are providing the catalysts for Americans to increase their spending. The ICSC said today that retail same-store-sales for January rose an above-average 3.7% versus estimates of a 3.0% gain. The unemployment rate among those eligible for benefits, which tracks the US unemployment rate, held steady at a low 1.9%. I continue to believe the job market will remain healthy over the intermediate-term as companies gain confidence in the sustainability of the current business cycle.
Inventories at US wholesalers unexpectedly declined in December by the most since May 2003 as sales surged, suggesting a manufacturing rebound in coming months, Bloomberg said. The wholesaler inventory-to-sales ratio, which measures how long inventories would last at the current sales pace, dropped to 1.17 months in December versus 1.19 months the prior month. Inventories of autos fell 2.8%, the largest decline since April 1998. The fact that inventories are coming down at such a rapid rate is a big positive. Inventory rebuilding should add to economic growth during 2Q.
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