Back
28 Nov 2013
Flash: Shock of shutdown fading - BTMU
FXstreet.com (London) - Lee Hardman, economist at The Bank of Tokyo-Mitsubishi UFJ noted the latest economic data releases from the US yesterday highlighted that the negative shock from the government shutdown and debt ceiling uncertainty has faded.
Key Quotes:
“Initial jobless claims fell further in the latest week and are almost back at the level from late September prior to the disruption created by the government shutdown”.
“The report appears consistent with solid employment growth in November with private employment growth having averaged 190k/month over the prior three months, which will likely coincide with a sharp decline in the unemployment rate moving it towards 7.0% by year end”.
“In contrast, it was also revealed yesterday that capital spending in the US continues to remain weak with core capital goods orders declining a further 1.2% in October lowering the three-month annualized rate to -6.0%”.
Key Quotes:
“Initial jobless claims fell further in the latest week and are almost back at the level from late September prior to the disruption created by the government shutdown”.
“The report appears consistent with solid employment growth in November with private employment growth having averaged 190k/month over the prior three months, which will likely coincide with a sharp decline in the unemployment rate moving it towards 7.0% by year end”.
“In contrast, it was also revealed yesterday that capital spending in the US continues to remain weak with core capital goods orders declining a further 1.2% in October lowering the three-month annualized rate to -6.0%”.