Just remember the operative word here is some. Jobless claims last week dropped 37,000 falling to 391,000 last week well below analyst expectations of 420,000. This was particularly positive as it fell for the first time beneath the psychologically important level of 400,000.
The next important level is 375,000, which is considered the level it must fall to for the unemployment rate to start falling. The Labor Department did preach caution "that the way it adjusts the data for seasonal fluctuations may have overstated the strength."
Read more: http://www.theage.com.au/business/world-business/us-jobless-claims-down-as-gdp-shows-rise-20110930-1kzsm.html#ixzz1ZRWTpRPz
In another positive development, the GDP growth rose to 1.3% during the 2nd quarter beating expectations of 1.0%. While to be sure 1.3% is still modest this along with increased consumer spending and increased export growth are another good omen. In a time when these have been in short supply we'll take it.
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