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Economy roundup: U.S. jobless aid applications fall to 14-year low

 
Published Oct. 16, 2014

A trio of economic indicators were released Thursday, showing a mix of results:

Unemployment aid

The number of people seeking U.S. unemployment aid dropped to the lowest level in 14 years last week, the latest sign of a strengthening labor market that could help blunt worries about the impact of weak global growth. The Labor Department said weekly applications for unemployment aid fell 23,000 to a seasonally adjusted 264,000, the lowest level since April 2000. Given that the U.S. population has grown considerably since then, the proportion of the U.S. workforce applying for benefits is even smaller. Applications are a proxy for layoffs.

Manufacturing

U.S. manufacturing output rose in September, led by gains in aerospace products, furniture, clothing and plastics. The Federal Reserve said factory production rose 0.5 percent in September after falling 0.5 percent in August. Over the past 12 months, manufacturing output has increased 3.7 percent. The continued pace of manufacturing output will likely be a bellwether for the economy.

Builder confidence

U.S. home builders' confidence fell in October after four months of gains that had pushed the indicator to the highest point in nine years. The National Association of Home Builders/Wells Fargo index dropped to a reading of 54 after climbing to 59 in September, the highest level since November 2005, right before the housing bubble burst. Readings above 50 indicate more builders view sales conditions as good rather than poor.