Jobless Claims Remain Unchanged at 48-Year Lows

​Highlights of last week’s economic news include jobless claims that remained at 48-year lows, slowing consumer credit growth, and a withdrawal from the Iran nuclear deal, which may result in higher oil prices in the near term.

• The Federal Reserve said last week that consumer credit increased at a seasonally adjusted annual rate of 3.6%, or $11.6 billion, for the month of March. The reading comes is the slowest monthly gain since September, and polled economists were estimating a gain of $15.6 billion. Revolving credit, which is typically credit card debt, decreased for the second straight month, illustrating that consumers may favor paying down debt over spending.

​

• President Trump announced last Tuesday that the US would withdraw from the Iran nuclear deal, a deal Iran signed in 2015 to limit its nuclear activities. The withdrawal is expected further reduce oil supplies. Traders anticipated the move, as oil topped $70 a barrel this week for the first time in four years.
  

• Initial jobless claims for the week ended May 5th were unchanged from the prior week, remaining at 48-year lows of 211,000 (seasonally adjusted), according to data released last week by the Department of Labor. The four-week moving average, however, fell 5,500 to 216,000, or the lowest level since December 1969. Economists that were polled estimated the week’s figures to reach 218,000.