U.S. Weekly Initial Jobless Claims Ease, Continuing Claims Soar

Initial claims for unemployment benefits in the U.S. fell in the week of April 25, while continuing claims surged to a new all-time high, the U.S. Department of Labor reported. Initial claims fell to 631k, against expectations for a flat reading, and following an upward revision of the previous week's 640k figure to 645k.

Meanwhile, continuing claims rose to a new high of 6.271 million reported for the reference week April 18, a larger number than the consensus forecast of 6.200 million. The previous week's level of 6.137 million was revised up to 6.138 million.

U.S. Consumer Spending Falls 0.2% in March as Income Slumps

U.S. Consumer Spending fell in March as a weak labour market continues to have a negative impact on personal income, the Bureau of Economic Analysis reported. U.S. Personal spending fell 0.2% in March after last month's revised 0.4% increase, and more than the expected 0.1% fall.

Personal income also fell more than forecasts, decreasing by 0.3% in March after last month's unrevised 0.2% decline and against the -0.2% expected. The PCE Core, the Fed's preferred measure of inflation, rose 0.2% in March to an annual rate of 1.8%. The result is higher than the 0.1% rise expected by economists and matches February's 0.2% rise and 1.8% annual rate.

Chicago PMI Jumps More than Expected

Business activity in the Chicago area climbed more than economists expected in April, with the Chicago Purchasing Managers Index up to 40.1, against expectations of a 35.0 reading. The index came in at 31.4 in March.

Order backlogs were up to 36.9 from 21.3, while new orders climbed to 42.1 from 30.9. Falling inflation continues, with the prices paid component dropping to 28.4 from 34.1. Production was up to 38.1 from 32.7.

U.S. Work Compensation Climbs at Slowest Pace on Record

Total compensation for civilian workers increased 0.3% in the first quarter of 2009, the Department of Labor reported Thursday, less than the 0.5% jump expected. Wages and salaries rose 0.3% following a 0.5% rise previously, while benefit costs rose 0.5%, matching the rise in Q4.

Private industry compensation advanced 0.2% in the first quarter, with a 0.2% increase in benefit costs. State and local governments reported a 0.8% increase in compensation, a 0.7% gain in wages and salaries and a 1.1% rise in benefit costs.

ISM Milwaukee Manufacturing Improves By Nine Points in April

According to the U.S. Institute for Supply Management (ISM), the Milwaukee manufacturing index rose 9 points to 39 in April.

The prices paid index rose to 43 from the previous month's level of 35. The new orders index increased by 13 points to 41, and the production component rose to 38 from March's reading of 24.

Canadian GDP Falls in Line With Expectations

Canada's economy contracted in line with expectations in February, with real gross domestic product (GDP) down 0.1% from January, Statistics Canada reported. In January, GDP fell 0.7% on the month.

The drop was led by a decline in construction and in mining activities (excluding oil and gas), according to Statistics Canada. Wholesale trade also contributed to the decline, falling 0.2%. Meanwhile retail trade was down 0.1% in the month. Manufacturing rose 0.1% in the month, marking the first positive reading in seven months. The gain was mostly attributed to the rebound in automotive manufacturing.

Canadian Industrial Product Prices, Raw Material Prices Climb

Canada's Industrial Product Price Index advanced 0.3% in March, while the Raw Materials Price Index jumped 12.1% from its February figure. On an annual basis, the IPPI was down 0.1% from 12 months ago.

The raw materials price index jumped almost entirely based on climbing prices for mineral fuels, the report stated. Economists had been expecting a 2.0% month-over-month increase in raw material prices and a 0.5% gain in industrial product prices.

U.S. Weekly Natural Gas Inventories Rise 82 Bcf

Underground U.S. natural gas storage climbed 82 billion cubic feet in the week ending April 25, in line with expectations, while supplies remain at above-average levels.

The front month natural gas contract was lower by $0.062 to 3.341 mmbtu shortly after the report. The Energy Information Administration (EIA) said total gas in storage was 1,823 bcf, and that supplies are higher than at this time last year and above the five-year average.

By Stephen Huebl, This email address is being protected from spam bots, you need Javascript enabled to view it , with contributions from Erik Kevin Franco, This email address is being protected from spam bots, you need Javascript enabled to view it and Megan Ainscow, This email address is being protected from spam bots, you need Javascript enabled to view it , edited by Sarah Sussman, This email address is being protected from spam bots, you need Javascript enabled to view it

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