- by New Deal democrat
We continue our exercise in flying blind (into terrain?) as the government shutdown prevented the release of housing permits, starts, and construction this morning; and the Fed did not have the data necessary to update industrial production and capacity utilization. The only current information we have on the housing sector is that mortgage applications declined for the third straight week (but are still 20% higher than one year ago), and prospective buyer traffic remains paltry.
The States did report their initial and continuing jobless claims, and these were updated by FRED this morning. I’ll have a complete report on Monday, but here are two preliminary comments.
First, claims from the DOGE layoffs in the Federal government are now showing up. Here’s the non-seasonally adjusted number of initial claims from DC, Virginia, and Maryland in the past year:
These have increased about 3,000 in the past several weeks to a new 12 month high in Virginia, and close to those highs in DC and Maryland.
Next, here are the YoY% changes in initial and continuing claims for the 4 biggest States: CA, FL, TX, and NY, which together make up about 1/3rd of the total:
Initial claims are higher by 1.1%, and continuing claims (with the typical one week delay) are higher by 0.6%.
As a preliminary matter, the bottom line is that there has been no significant increase in jobless claims in the past few weeks - a neutral reading suggesting a slow, but still expanding, economy.
