First Time Jobless Claims Fall 7K

The outlook for the economy just got a big boost from a solid decrease in initial claims which fell 7,000 to 262,000 for the February 13 week -- which is also the sample week for the February employment report. This is the lowest reading since November and, more immediately for expectations on the monthly employment report, is down a very sizable 32,000 from the January 16 week which was the sample week for the January employment report. The 4-week average is at 273,250 for an 8,000 decline, which is also a sizable decrease, and is down 12,000 from January's sample week.

Data for continuing claims, which lag by a week, rose 30,000 to 2.273 million for the February 6 week with the 4-week average up 14,000 to 2.263 million. The unemployment rate for insured workers ticked up 1 tenth to 1.7 percent.

The rise in continuing claims, because the reporting week doesn't match the monthly sample week, will be pushed aside by the very favorable data on initial claims -- data that point to significant improvement for the February employment report. Special factors did not skew today's report though data for Pennsylvania were estimated due to a computer issue.