Fewer people filing for jobless claims last week was the result of companies extending payrolls in October by the largest amount in eight months. Analysts and strategists noted that this week’s data indicate the trend is firming up into the fourth quarter.
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The Labor Department reported that jobless claims fell by 9000 to 363,000. Economists had forecast 370,000 and ADP Research Institute reported that US companies added 158,000 new jobs, a number that was higher than analysts’ forecasts.
The ADP used a new report this week based on a larger survey sample and new methodology.
The ADP may have revised its methods in an effort to report more accurate readings since its estimates are often revised significantly in subsequent months.
Economists surveyed by Bloomberg forecast a factory index reading of 51 for October, above the mark of 50 that indicates expansion. Forecasts ranged between 49.2 and 52.5.
Oil added to this week’s gains after the US Energy Department said oil supplies declined
last week. US government debt declined for a third consecutive month in October. It is the longest decline since the last quarter of 2010.