Weekly Unemployment Claims Unchanged, New York Manufacturing Activity Rebounds

Highlights

• Weekly unemployment claims stable, 4-week average reaches highest since November 2021.
• US retail sales increase by 0.3% in May, with nonstore retailers showing significant growth.
• New York manufacturing activity rebounds in June, future business conditions improve.

Overview

US Weekly Unemployment Claims

In the week ending June 10, the number of initial claims for unemployment benefits remained unchanged at 262,000. The 4-week moving average increased to 246,750, the highest since November 2021. The previous week’s figures were revised up slightly. The weekly estimate was 246,000.

US Core Retail Sales, Retail Sales

In May 2023, U.S. retail and food services sales reached $686.6 billion, a 0.3% increase from the previous month and a 1.6% increase compared to May 2022. Sales for the March-May 2023 period were up 1.7% from the same period last year. Retail trade sales increased by 0.3% from April 2023 and by 0.7% compared to last year. Nonstore retailers saw a significant increase of 6.5% from last year, while food services and drinking places increased by 8.0% from May 2022.

Empire State Manufacturing Survey

In June, manufacturing activity in New York State rebounded modestly after a significant decline the previous month. The general business conditions index rose by 38 points to 6.6, indicating slight improvement. New orders and shipments also increased, while unfilled orders and inventories continued to decline. Employment and workweek indexes remained negative, signaling further declines. Price increases slowed, and future business conditions showed increased optimism. However, capital spending plans remained soft, with a slight increase in the capital spending index. The actual reading exceeded traders’ estimates of -15.0.

Philly Fed Manufacturing Business Outlook Survey

The general activity index declined to -13.7, marking the 10th consecutive negative reading. New orders and delivery times remained negative, while current shipments rose to its highest level since January. Employment levels were mostly steady, with equal shares of firms reporting increases and decreases, and a majority reporting no change. The average workweek index slightly decreased.