Claims data/Larger goods deficit could lead to Q2 trim/Q1 revision

Initial jobless claims rose to 219k from 216k and that was 2k above the estimate. The 4 week average shifts up to 223k from 220k and that is the highest since last September. Continuing claims totaled 1.791mm, still hanging around the 1.8mm level and about as forecasted.

Bottom line, we know the pace of hiring’s have slowed and the demand for labor has moderated but the curl up in the number of those filing claims, while still historically low, is worth keeping our eye on.