Economy: More Fuel For The Recovery

This morning we got more encouraging news from the economic front. The weekly jobless claims dropped to 348.000, the lowest level since early 2008 (bespokeinvest.com). The shrinking claims for unemployment fit the job market report from January, which showed a plus of 243.000 new jobs (money.cnn.com). These numbers confirm that the job market, which stagnated most of the last year, is gaining traction.

The upswing on the job market should boost consumer expenditures and fuel the economic recovery for 2 reasons:

1. The consumers gain more money for spending.
2. They will spend more because their risk of loosing their job is decreasing as the shrinking jobless claims show.