Both the ISM/PMI surveys and ADP showed job losses in the manufacturing sector, while the latter showed solid job gains on the services side. After last week’s decline in initial jobless claims, expectations are for more of the same labor market strength this week and sure enough, 227k Americans filed last week, up very modestly from the 221k (downwardly revised last week) hovering around 6-month lows. Non-seasonally-adjusted, initial claims fell to 205k, near 9 month lows…
Source: Bloomberg
Under the hood, Missouri saw a big jump in claims with Ohio, California, and Georgia all seeing notable declines…
Continuing claims also remained near 7 month lows at 1.700mm…
Source: Bloomberg
So more of the same, all indications suggest a strong labor market entirely dislocated from The Fed’s tightening moves.
