U.S. initial jobless claims did what they were expected to do: They fell by a modest 11,000 last week, to 448,000. That marks the second consecutive week of declines, after back-to-back nasty surprises earlier in the month, and indicates that the U.S. labour market could be healing, if at a slow pace.
A couple of early reactions:
Sal Guatieri, BMO Nesbitt Burns: "Initial claims are probably at levels consistent with some job growth. Private-sector payrolls should post another moderate gain in April."
Nathan Janzen, Royal Bank of Canada: "Going forward, we expect continued improvement in labor markets to be reflected in a further moderation in the pace of layoffs as well as a continued pick-up in the pace of hiring. These gains are expected to help to sustain the overall economic recovery through 2010."