US jobless claims fell to a nearly four-year low, the government said today, but the report was skewed by seasonal factors while weak June sales at top retailers may bode ill for consumer spending.
First-time claims for state unemployment insurance benefits plunged 39,000 to 310,000 last week, the Labor Department said. It was the lowest level for claims since 302,000 in the week ended October 8th, 2000.
A Labor Department official said the seasonal adjustment method used to calculate the data had anticipated a surge in claims for automakers' annual summer maintenance closures, but that rise did not occur in the week expected.
He said July is often a volatile month for claims overall. Meanwhile, major US retailers posted disappointing June sales, with Wal-Mart Stores Inc. generating its smallest monthly sales gain in more than a year as cool weather hurt summer merchandise demand.
Consumer debt loads climbed in May by a larger-than-expected $8.2 billion, the Federal Reserve said in a report today that also revised up April's credit increase to $5.3 billion from an originally reported $3.9 billion rise.
US 30-year mortgage rates averaged 6.01 per cent this week, down from 6.21 per cent last week.