Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, September 29, 1995 TAG: 9510030018
SECTION: BUSINESS PAGE: A7 EDITION: METRO
SOURCE: BLOOMBERG BUSINESS NEWS
DATELINE: WASHINGTON LENGTH: Medium
In the latest sign of renewed economic strength, the Labor Department said applications for unemployment insurance fell 31,000 to a seasonally adjusted 335,000. Economists had expected a decline of about 8,000 claims.
``This series is pointing to a stronger labor market,'' said Dana Saporta, an economist at Stone & McCarthy Research Associates in Princeton, New Jersey.
The trend in jobless claims is too strong to ignore, said Carl Palash, chief economist at MCM MoneyWatch in New York. and Palash said he believes the level of 335,000 claims accurately portrays the health of the nation's labor markets. ``It joins other evidence we're getting showing economic activity is doing better,'' he said.
The four-week average for jobless claims, a less volatile gauge of employment conditions, fell to 351,750 from 355,000 in the week ended Sept. 16. In that week, claims increased a revised 2,000, initially reported as a rise of 1,000.
A help-wanted advertising index released Thursday by the Conference Board underscored continued demand for skilled workers. The business research group said its index of ads in newspapers across the country stood at 130 in August, unchanged from July and up from 127 in August 1994.
An increase in ads from spring through late summer suggests job growth probably will pick up speed through the end of the year, said Ken Goldstein, an economist at the board.
In another sign of a strengthening economy, the Mortgage Bankers Association of America said consumers applied for mortgages at the fastest pace in 19 months in the week ended Sept. 22.
Also Thursday, the APICS/Evans Economics Business Outlook said U.S. factory activity accelerated in September, although excess inventories will weigh on activity for the rest of the year.
The outlook's index increased to 50.1 for the month from 49.1 in August. A reading of 50 suggests modest strength in manufacturing industries.
Factory inventories are still too high, the report said, so ``production plans are likely to be pared back during the fourth quarter.''
by CNB