US Jobless Claims Rise Slightly

Posted November 23rd, 2011 at 10:45 am (UTC-5)
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Data published Wednesday show a mixed picture of the U.S. economy, with both unemployment claims and consumer spending posting slight gains.

The Labor Department says the number of Americans signing up for unemployment benefits edged up 2,000 last week to a nation-wide total of 393,000. It is the first time in two months that jobless claims have risen.

The Commerce Department says consumer spending rose one-tenth of a percent in September, which is less than the prior month. Consumer demand drives most U.S. economic activity, so experts watch it closely.

Another report said orders to U.S. factories declined in October. Experts say that is largely due to a drop in orders for commercial aircraft. Outside that volatile area, the overall manufacturing sector made some gains.

The mixture of discouraging and upbeat reports is not reassuring officials at the U.S. central bank. They are ordering major U.S. banks to show how they could cope with a serious downturn in the economy. The “stress tests” are intended to see if banks have the skillful management and financial reserves they would need to cope with a sharp decline.