Unemployment claims jump to 231,000

Nov. 16:

Weekly initial jobless claims rose to 231,000 last week from 218,000 the prior week. The four-week moving average now stands at 220,225. The number of continuing claims, at 1.865 million, was the highest it has been in two years.

Manufacturing output fell more than expected 

The manufacturing component of Industrial Production fell 0.7% in October, a larger than expected drop. Along with the increase in new unemployment claims, it gives credence to the idea that there’s been some slowing in the economy.

Capacity utilization dropped from 79.5% in September to 78.9% last month.

Philadelphia Fed: Regional manufacturing contraction continues

The Philadelphia Fed Manufacturing Business Outlook index remained negative in November, which indicates an outlook for contraction in manufacturing in the area under the Philadelphia Fed’s jurisdiction. But at -5.90, the index was the least negative it’s been since August 2022.

Import prices fell 0.8% last month

The Import Price Index dropped 0.8% in October and fell 2.0% year over year. Much of the decline was attributable to lower fuel costs.

State of the market

This morning, the Dow traded down and Treasury yields were down relative to Wednesday morning.

Economic calendar

Friday, Nov. 17

• Housing Starts/Building Permits

Treasury calendar

There are no auctions of Treasury notes or bonds this week.

By Mike Kraft, Executive Director and Commercial Real Estate Treasurer for Commercial Banking