U.S. weekly jobless claims resume downward trend; fourth-quarter GDP revised slightly up

• The number of Americans filing new claims for unemployment benefits fell slightly more than expected last week, indicating that the labour market recovery was gaining traction. 
• The weekly jobless claims report from the Labour Department on Thursday also showed unemployment rolls shrinking to levels last seen in 1970, underscoring the tightening labour market conditions. There is an acute shortage of workers, with a near-record number of job openings, keeping layoffs minimal. 
• Rubeela Farooqi, chief U.S. economist at High-Frequency Economics in White Plains, New York said that beyond weekly moves, they see the downtrend in filings persisting as virus-related disruptions continue to dissipate and businesses return to more normal operations. Overall, strong demand for labour, amid labour shortages, suggest layoffs will remain low. 
• Initial claims for state unemployment benefits decreased 17,000 to a seasonally adjusted 232,000 for the week ended Feb. 19. That almost revised the prior week's surge, which economists had blamed on week-to-week volatility in the data and the delayed impact of winter storms early in the month. 
• Unadjusted claims tumbled 24,824 to 214,873 last week, led by a sharp decline in Missouri. There were also significant decreases in filings in New York, Ohio, Tennessee, Florida and New Jersey. That offset a large increase in Michigan. With 10.9Mn job openings at the end of December, claims are likely to fall back below 200,000 in the coming weeks. They were last below this level in early December.

(Source: Reuters)