U.S. initial claims inched up 4,000 to 352,000 the week ending April 13, just slightly above market expectations for a 350,000 reading. The modest increase in the latest week followed an outsized 40,000 drop to an upwardly revised 348K (was 346K) the week ending April 6 that still more-than-retraced a 31,000 surge to 388,000 the week ending March 30.
The four-week moving average of initial claims, which better controls for weekly volatility, rose for a fourth consecutive week, inching up to 361,250 from 358,500 the previous week. Continuing claims for the week ending April 6 declined 35,000 to 3,068,000.
The modest gain in initial claims retraced little of the drop the previous week and provides further reason to suspect that much of the outsized jump the last week in March reflected difficulties seasonally adjusting the weekly data around an earlier-than-usual Easter rather than underlying weakness.
The modest upward trend in the four-week moving average may still be reflecting some impact from sizable government spending cuts implemented in March, which are expected to have a dampening impact on economic growth and labour markets in the near-term.
