While the number of Americans filing for unemployment benefits dropped to a more than 48.5-year low last week, trade tensions are casting a shadow over the economy’s outlook, Reuters reports.
For the week ending July 14, initial claims for state unemployment benefits decreased by 8,000 to a seasonally adjusted 207,000, Reuters reports—the lowest reading since early December 1969.
But the labor market—viewed as being at or near full employment—still had 6.6 million unfilled jobs in May, reinforcing the findings of The Beige Book, Wednesday’s report by the Federal Reserve that showed worker shortages persisting in early July across a range of occupations, from engineers to truck drivers.
Fewer manufacturers have plans to increase capital spending, the report reveals, suggesting the new trade policies between the United States and its trade partners in China, Canada, Mexico and the European Union could hurt business sentiments.
Manufacturers also continue to report higher prices for both purchased inputs and their own manufactured goods, with 63% of manufacturers in the mid-Atlantic region reporting paying more for imports this month compared to 54% in June.
