GDP growth down, unemployment claims up

ptif219 · May 31, 2012

It appears to be very bad news for Obama. If this trend continues Obama will be another one term jimmy Carter

http://www.latimes.com/business/money/la-fi-mo-economy-gdp-20120531,0,925641.story

New unemployment claims unexpectedly jumped last week, indicating a pickup in layoffs, a worrisome sign ahead of Friday's important jobs report for May.

Adding to the dreary economic news, the government said in a separate report Thursday that U.S. gross domestic product grew at a slower pace in the first quarter than previously thought. Growth in GDP, the total value of goods and services produced in the nation, was revised down to an annualized rate of 1.9% from 2.2% initially estimated a month ago.

The revision by the Commerce Department reflected a smaller increase in consumer spending and inventory building, and a bigger drag on growth from government cuts and the trade deficit. On the positive side, business investments were revised slightly higher.

GDP expanded at an annual rate of 3% in the fourth quarter of last year. Many analysts are expecting GDP growth to remain mediocre this year at about 2.5%, which doesn't bode well for the job market.

The Labor Department's report Thursday on weekly unemployment claims showed first-time filings rose to 383,000 for the week ending Saturday. That was an increase of 10,000 from the previous week's revised figure, a sizable jump after smaller increases in the previous two weeks.

The rise in jobless claims was consistent with a report from Challenger, Gray & Christmas, a private outplacement firm, that showed an acceleration of layoff announcements this month by employers. Challenger said Thursday that businesses in May announced plans to cut 61,886 workers from their payrolls, up 53% seasonally unadjusted from April and 67% higher than May 2011. The May layoffs were reported largely by the computer industry.
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GDP growth down, unemployment claims up

ptif219 Well-Known Member

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GDP growth down, unemployment claims up

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