For the week ended July 19, the number of Americans filing new claims for state unemployment benefits fell by 19,000 to 284,000, which is the lowest level since February 2006. Economists had forecasted a much higher score of 310,000. Last month, the indicator showed steady improvement. The 4-week moving average decreased by 7,250 and reached 302,000, the lowest level since May 2007. The number of workers continuing to draw unemployment benefits dropped by 8,000 to a seasonally adjusted 2.5 million in the week ended July 12. The current slump indicates a reduction in the number of layoffs in the United States. In June, the American economy created a record number of jobs, and the unemployment rate dipped to 6.1%. July is likely to be another strong month for the U.S. labor market. Steady improvement of employment can lead to a long-awaited increase in consumer confidence. Despite common economic growth, the American consumers are not so confident about the future and not in a hurry to spend money, while, in fact, domestic demand is the basis of the U.S. economy.
