Wednesday, December 30, 2009

The Straw That Stirs The Economic Drink - Initial Claims For Unemployment



One of the strongest indicators of improving economic conditions is the trend in initial claims for unemployment insurance. When this trend starts moving down, as it is doing now, that normally is a good early indicator for the trend in the overall unemployment rate.

As the chart above shows, the initial claims trend is clearly moving down. Will a related decline in the unemployment rate soon follow?

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