Good News Friday . 12.16.11

Good News Redux

For the second week in a row, the standout piece of good economic news is the decline in the number of Americans filing for their first week of unemployment benefits. Initial jobless claims, seasonally adjusted, fell sharply to 366,000 for the week ending December 10, down by 19,000 from the prior week. It is the lowest level since May 31, 2008. The four-week moving average, which smooths out the noise in the weekly data, fell to 387,750, the lowest since July 12, 2008. Readings below 400,000 generally indicate that the labor market is expanding. The two-week plunge in weekly claims suggests that the sharp drop in the unemployment rate last month from 9.0 to 8.6 percent was not a fluke. Granted, the weekly claims data are volatile especially around the holidays. Moreover, the unemployment rate and the number of long-term unemployed in the U.S. – 5.7 million who have been without work 27 weeks or longer – remain far too high. But recent trends in the data suggest the labor market is starting to shake off its multi-year torpor.

More good news: inflation as measured by the consumer price index remains in check – unchanged in November on the heels of a 0.1 percent drop in October. Year-over-year rates remain a bit high at 3.4 percent overall and 2.2 percent excluding the volatile food and energy categories (a concept called core inflation). Inflation is expected to subside in the months ahead.

Have a great weekend.

Best regards,

Bob

Robert Bach

SVP, Chief Economist

Grubb & Ellis

312.698.6754

To unsubscribe from this email select "Reply" and type "Unsubscribe me" in the subject field.
© 2011 Grubb & Ellis, all rights reserved.

Advertisements

About CRE Northwest

Specialist in office & investment real estate in Seattle & the Eastside
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s