US New Unemployment Claims Decrease After 3 Weeks... Consumer-Related Indicators Worsen

[Image source=AP Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] New unemployment claims in the United States have turned downward for the first time in three weeks. Consumption-related indicators, which account for two-thirds of the U.S. economy, have deteriorated.

The U.S. Department of Labor announced on the 23rd (local time) that new unemployment benefit claims for the week of December 13-19 totaled 803,000.

This was a surprising drop compared to the market forecast of 880,000 compiled by Dow Jones.

The previous week's actual number of new unemployment claims had risen to 892,000, raising concerns about the worsening employment market due to the resurgence of COVID-19.

Consumption-related indicators worsened. According to the Department of Commerce, personal income in November fell by 1.1% compared to the previous month. This exceeded the market expectation of a 0.3% decline. Personal income showed the largest drop in four months.

As income decreased, spending also declined. Personal spending in November decreased by 0.4%, worsening beyond experts' expectations of a 0.2% decline. Consumer spending fell for the first time since April.

On the other hand, durable goods orders, including household and electronic products, increased by 0.9%, the highest level in seven months. This is interpreted as a phenomenon resulting from the prolonged work-from-home trend.

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