Jobless Claims, Import Prices Rise

- Initial Jobless Claims rose to 342K versus estimates of 320K and 323K the prior week.
- Continuing Claims rose to 2527K versus estimates of 2505K and 2489K prior.
- The Import Price Index for March rose 1.7% versus estimates of a .8% gain and a downwardly revised .1% increase in February.

BOTTOM LINE: The number of Americans filing first-time claims for unemployment benefits unexpectedly rose last week, influenced by the Easter holiday and school spring recess, Bloomberg reported. The four-week moving-average of claims rose to 323,250 versus 316,250 the prior week. The unemployment rate among those eligible for benefits, which tracks the US unemployment rate, held steady at 1.9%. I continue to believe the job market will remain very healthy over the intermediate-term without generating substantial unit labor cost increase.

Prices of goods imported into the US rose last month, led by a surge in the costs of crude oil and natural gas, Bloomberg reported. The average price of a barrel of crude oil traded on the NY Merc rose to $62 on March 1 from $57.30 on February 1. Excluding energy, import prices only rose .2% in March. Prices for imported capital goods declined .1% versus a .2% decline in February. I expect import prices to decelerate from current levels over the intermediate-term as energy prices fall from current levels.