The number of initial jobless claims rose by 29,000 to 219,000 in the week ended October 1. The previous week’s revised level was 190,000 (a downward revision of 3,000). The figure was higher than the expected 203,000 mark.
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Further, the four-week moving average came in at 206,500, indicating an increase of 250 over last week’s average.
Additionally, continuing jobless claims, at 1.36 million, had increased from the prior ~1.35 million figure. The rising jobless claims, coupled with tightening labor market conditions, as evidenced by more and more downsizing announcements, are signs of softening consumer demand and tightening household budgets.
Added to this, the number of job openings in August dropped to 10.05 million versus the prior 11.17 million figure.
These developments mean the Fed’s relentless rate hikes are putting a damper on demand, which could lead to cooling inflation levels, which is the Fed’s stated end goal. A Fed pivot could materialize sooner than expected, going by these numbers.
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