Reports: Economy on solid ground
The U.S. economy is just fine, thank you.
A string of reports Thursday showed the labor market is getting stronger, consumers are increasingly optimistic and manufacturers are expanding, adding to signs that gross domestic product remains on track for a solid performance in the third quarter.
Filings for unemployment benefits fell for a third straight week to a new 48-year low, as businesses hold on to existing staff amid a shortage of skilled workers, according to Labor Department fig- doing
ures. That’s a good sign for the September payrolls report: The claims data, covering the week containing the 12th of the month, coincide with the reference period for the Labor Department’s survey for the monthly figures.
The Bloomberg Consumer Comfort Index showed sentiment advanced last week to a fresh 17-year high on brighter views of the economy, personal finances and the buying climate. In addition, the report’s monthly economic expectations index rose to 57.5 in September, the highest since March 2002.
A gauge of manufacturing from the Federal Reserve Bank of Philadelphia rebounded in September from the lowest level in almost two years, as orders, shipments and employment picked up. At the same time, price pressures are easing, as a gauge of input prices fell to the lowest since January.
The economy is still facing some headwinds, including an intensifying trade war with China. Also, the Federal Reserve is expected to raise interest rates next week, which could boost borrowing costs for businesses and consumers. And the damage from Hurricane Florence may affect some indicators — such as employment and housing — though rebuilding should give a boost to the economy later on.