Continuing the Claims

Why Jobless Data Is So Important...

Did you know that consumer spending in the U.S. Accounts for roughly 70% of our economy?

Looking closer at the data, new claims dropped 27,000 from the previous week to come in at 451,000. However the previous week was 472,000, which is a drop of 21,000. What about the other 6,000? As usual REVISIONS. Last week's data was revised UP from 472,000 to 478,000-6000 more then were reported last week. So this week looks particularly strong in contrast.

Can we trust the numbers? I think we will see a huge revision and thus the market may not be as excited about this report as you might expect.

NINE states, did not report their numbers because of the Labor Day Holiday, which allowed California, one of the biggest economies in the world, to estimate their claims as well as Virginia. As for the other 7 states, well guess who had the honor of guessing what their numbers were? The Federal Government were allowed to make the guesses for those states. I don't know about you, but for me, that's like letting the fox count the eggs in the hen house.

Also in this report, people on unemployment was little changed, the number of people receiving UE benefits fell by 2,000 to 4.48 million the forecast was a drop to 4.45 million. People on extended unemployment actually increased by 29,300 to 5.47 million. Something tells me in are in for a big revision next week.